Saturday, January 17, 2015

Finger Lakes NY Real Estate

By Kristen Baird


As time passes by, there is often a need for one to protect his future by investing in properties. Houses, for instance, have always presented the bets long term investment opportunities to investors. Any person interested in Finger Lakes NY real estate will have a decision to make on how to use it once he has taken over ownership.

Before making an investment, it is always important to make sure that you have a good understanding of what your cash flow situation is. You must ensure you have all the funds that will be required at hand. For instance, make sure the money used in making the down payment is readily available.

When preparing your budget, be sure to budget properly. Budgeting will require that you not only consider the purchase price, but also the maintenance fees. Taxes have to be paid and repairs have to be made in order to keep the house operational.

Determine whether an area can be categorized as a growth area before buying there. A growth area is one where the investor is assured there will always be a need for houses. It can be close to a university or a government-sponsored institution.

Look at your goals and be realistic with them. You need to make a decision on whether to make a short term investment, also known as fast capital growth, or to hold on to the property for a longer duration. During the high seasons, it will be much easier to purchase a house, renovate it and then sell it for a profit.

Sweat equity can help you save a lot of money in the long run. With sweat equity, you will be making sure you do not have to call in a contractor every time there is a minor leak or an electrical problem in one of your properties. It helps you save, by choosing to learn a few skills on how to repair stuff.

Do not let your heart make all the decisions for you. When looking for rental property, the focus must always be on comfort and presence of basic amenities and not luxury. As long as the house is livable, then you will be okay.

Speak to a financial expert in order to learn what negative gearing is and how it can be avoided. Negative gearing is not something that any investor will like to experience for prolonged periods of time. You will need to ensure that you understand all the risks that may come with it.

Each investor needs to look into the amount of debt that he has. Look at your income and then compare it with the loans that are being repaid. You will then need to make a decision on whether you can afford to take another loan or not.

It will be important to have your property assessed by a professional home inspector. The inspector will go through it as a way of establishing whether it is in good condition and whether there are any major problems. Ensure the problems are addressed before signing the ownership documents.




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