Posts Tagged ‘Real estate as an investment’
How to Compare Investment Properties
Real estate as an investment is in most cases a fiscally sound opportunity-provided the price and property are right. As the maxim goes, “They are not making anymore land.” Real estate is of finite supply, but a person needs to how to compare and contrast properties to choose the best investment.
1. Determine the sale price of comparable properties that were recently sold in the neighborhood. This will give an investor an idea of the market of the property. The most complete comparable sale information is available through any local real estate agent.
2. Ascertain the desirability of the property’s neighborhood. Many issues factor into this comparison, including new construction, schools, crime rate and tax rates. The intangible value of the property will be greater if these issues are favorable.
3. Establish the amount of work that needs to be done to make the property up-to-date. Some properties will need almost no upgrading, but these properties cost market value or above. Typically, the best investment properties will need some work. An investor must determine if the labor and cost are feasible for a return on investment perspective. Read the rest of this entry »
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