Many people achieve their wealth through venturing into the world of real estate but it is no walk in the park. Managing even your own personal real estate properties requires a lot of reading and paperwork that you may just be tempted to shrug it off and let your real estate agent to all the work.
This should not be the case. You, as a real estate owner, should also learn what’s happening with your property and what the future holds for it since, as you may already know, the market value of real estate properties tend to rise as years go by.
What You Need to Know
Every real estate professional, owner and or investor should know:
• The local property pricing.
Not only do you need to be updated with the latest market value of your estate but you should also learn the trend of its price in the locality. In fact, if you wish to invest in real estate, you should know if there are areas in the city where the average home price is increasing in value and compare it to neighboring towns. By doing this, you would be able to determine the local demand for real estate properties. It would also give you a sense of what’s fair in buying and selling houses, and be able to avoid overpricing or buying properties that are overpriced.
• The upcoming catalysts.
The establishment of new infrastructures such as malls, hospitals or schools is some of the biggest catalysts of price change when it comes to real properties since they determine the population which can set out a market value hike. Another sign that the area is about to have a growth spurt is the construction of new roads or even road widening which would increase the traffic in the area. These catalysts can be easily spotted especially if you’re into going on a road trip around town and sightseeing for telltale signs of construction of buildings and major highways.
• The alternatives that bear low tax.
Lower tax in the locality would definitely attract more estate buyers, thereby increasing the demand in the area. Some real estate agents can help you determine which properties would have high or low taxes depending on the local assessor’s tax evaluation. One surefire sign of a real property tax increase is the reassessment of some properties. You should also beware of towns that are already overcrowded as it may also be a reason for a tax hike since the local government would need to reconstruct roads and build more schools to accommodate a bigger population using funds from tax.
• The school rankings.
Believe it or not, top performing schools attract more people into moving in an area which means more customers for real estate agents. If you wish to invest in real properties—say for example a boarding house or a dormitory—you should know how many students-slash-customers should be accommodated. Remember: the higher the ranking of the school, the bigger its population.
• The value of the outskirts.
When properties are gradually increasing in demand a certain city or town, you should also keep an eye on the outskirts of the area because if the city proper’s houses have already occupied the total land area for residency, people will start buying lands along the outskirts.