If you are looking at investing in property for sale in Burlington County, you likely already know that this time of investment is an excellent way to diversify your portfolio, provide a tangible investment option and it also allows you to be more hands on with your investment.
Real estate investment has many benefits, but can be a difficult market to penetrate if you are not prepared. Here are a few questions you should ask yourself before you spend time, money and energy investigating potential homes for sale in Burlington County
Investing in Reliable Burlington Country Real Estate
Can you handle the heat?
Quality real estate in Burlington County can be hard to come by, particularly for investment purposes. In a competitive market, you will have to be well informed, fast and smart to snag an investment property from a competitor.
Purchasing foreclosure homes for sale in Burlington County is particularly competitive because the homes are cheaper and provide more opportunities for a profit. While this can be an excellent investment, there are many buyers, be prepared to offer a fair bid to improve your chances.
Do you understand all of the financial implications?
Purchasing reliable Burlington County real estate at an affordable price is only one part of the investment process. If you purchase a foreclosed or bank owned property, you might think the only thing to worry about is the difference between the cost and the sale price. This simply is not true.
Remember to factor in mortgage payments, taxes, insurance and maintenance when considering your investment. Each of these can affect your bottom line. You should also keep an eye on sales trends in your areas. If you see a ton of foreclosed homes on the market, know that this could be a sign that more homeowners are unable to keep their homes and could indicate a tough selling market.
You could lose money on your investment if you buy the wrong property, if you buy in the wrong neighborhood or if you buy at the wrong time. Some strategies can help reduce the cost of owning the property. For example, consider setting a deadline to have the house sold by. If it does not sell, reduce your price. While this may seem counterintuitive, selling your home faster and a slightly lower price may be much more cost efficient than holding out for a high bid.
Do you know the market?
As mentioned above, understanding the market could save you a lot of time and heartache. Look at the homes selling in the neighborhood in which you are interested. Look at surrounding neighborhoods and see how houses of similar size and feature are selling.
Pay attention to real estate websites and note market trends. Real estate is a relatively safe investment; however, one drawback is that low-buying periods can last a while. Monitor potential growth and development that would clue you in to an increasing population looking for a new home. If you flip the property, use caution. You want to improve the property enough that you make your money (plus some) back, but if you spend too much money improving it to surpass selling Burlington County homes for sale costs in the neighborhood, you could have a hard time selling it.
What type of real estate investment do you want?
Generally, there are two ways to invest in (noncommercial) Burlington County real estate. You can choose to purchase real estate in Burlington County as rental property or to flip and sell. Both options have numerous benefits and a few drawbacks as well.
Rental: Rental property is definitely more hands on. You will have to manage the property or hire a management company to do it for you. This means maintenance, collecting rent, dealing with neighbor complaints etc. Additionally, rental properties require cleaning and repainting between each tenant. If you do not want to be hands on, you can hire a management company that will charge you a flat fee each month to oversee the details.
Property Flips: Flipping a property simply means purchasing the home at a cheaper price, investing in a bit of cleanup and repair and reselling it or a higher price. The most cost-effective way to do this is to do the remodeling and repairs yourself, though you could hire a professional crew to do the work. Once the house sells, it is gone. The biggest risk here is finding the right market to sell the property and finding the balance between too little and too many improvements.
Are you going in with your eyes open?
When you purchase foreclosed or bank-owned properties, you need to know what you are purchasing. In many cases, the home is damaged, dirty and in need of major TLC. Before you make an offer on a home, ask to take a tour. Look through each room, read inspection reports (or pay for an inspection) and check out the neighborhood. Determine if the cost of investing in the property will pay off in the end.
Investing with the help of a Burlington County realtor will make the purchasing process infinitely easier. Choose someone who is familiar with the area and can help you come up with a fair number. Choosing the best Burlington County realtor will give you access to important information about the market and faster tips on new homes/property on the market.
If you choose to move forward with your real estate investment, take care to have someone on your side who is experienced in navigating the market.