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How Do I Know If I Made A Good Investment

How Do I Know If I Made A Good Investment

How can I honestly know if my latest Real Estate purchase is a good investment?

Investment Good Made If I How

Look at the past assestments on the home. Is it going up yearly? Is the neighbor hood quiet and the homes in good repair? Are the lawns well taken care of? If you can answer these questions with a yes then you have made a great investment. If one or more of them is a NO then you may have not invested wisely.

How Do I Know If I Made A Good Investment History & Civil Business Politics

I would add did you pay the current price or win it in a bidding war also. Or like me bought a wreck and it is under priced. Now can you bring it up to snuff while not spending more then it is worth.

Investment Good Made If I How

There is no guaranteed way of making sure you have a good investment in real estate, because you can only realize this fictious profit by selling. Honestly, you would want your homes value to stay low or actually decrease (lowers your taxes) when you own it up until the moment you decide to sell. At that point, you miraculously want your homes value to jump up quickly. Now there are a few things you can do to try to get the best deal at the time of purchase:

*you can buy a fixer-upper as Krakyn said...basically looking for a home with potential but is undervalued due to conditions of the home.
*right now is a great time to look for signs that say "bank owned". Banks want to get rid of homes quickly and are willing to take a bit of a hit on price to get them off their hands.
*look for a area/suburb around a developing or growing city. This gets to KNTorn's point about growth of the area. The area you might buy into might not be growing yet, but if it is right next to a growing city, then you have a good chance to realize increased valuations to your home.
*look for how long a home has been on the market. Has the house been on listing for 6 months/1year? If so, you can go in with a low price and see how anxious the owners are to leave.
*get to understand who lives in that area. Are there snowbirds? (people that live in one place for the summer and another for the winter...usually retired) If you have a lot of retired snowbirds living in your area, they can potentially dump real estate on the market and take lower prices for it, when they decide it is of no use to them anymore.

I bought a very nice home on a golf course in Virginia. Beautiful house and I got a good deal on it at the time (-20% from the list price). It actually valued at higher than what I paid, so I though I was doing great. However, my next job forced me to sell the house immediately. The market at that moment was not very good. The most recent sales around me were far less than what I paid. When my house was appraised again, the value dropped to below what I paid. When asking the appraiser, he just said it is a timing thing. If you sell this house in the summer, the price will go up dramatically. Now is just a bad time. So, you never can have a guarantee with real estate, but if you are will to hold on to it, eventually, most all real estate increases in value.