Wise investors place a lot of emphasis on research and planning before they commit their hard earned funds.
We take a look at the big factors to consider, and some to avoid.
But first, lets look at some general advice from the acclaimed investor Warren Buffett;
- Fear in others is an opportunity for you.
- Invest in what you understand.
- Concentrate in long term results.
- Maintain a healthy margin.
Some other great advice from general investors;
- Don’t let emotions drive your investment, stick to the facts and figures.
- Use leverage wisely to maximize Return on Investment (ROI)
- Don’t over borrow!
- Watch out for fees!
- Obtain the best possible finance deal, don’t settle for the relief of the first offer!
How do those investor tips affect home buying decisions?
Taking those pieces of great advice will serve you well, but has anyone ever bought a home without emotional influences?
No, we guess not!
After all, just about everyone buys a home because of its intrinsic appeal, the location and even the romance.
It is best to avoid emotion in buying a home, but its always beneficial to design and furnish it with every ounce of passion that you have!
The advice however, is a nice reminder that we don’t ignore all of the other pieces of sound advice too.
The numbers have to add up, it has to be affordable, and you really need to consider the longer term investment.
For us though, the goal of our team is to provide the best possible home that meets every possible requirement.
We have a long track record of making great homes for families and investors.
Understanding communities and locations
The age old saying of location, location, location rings in every experienced home buyer’s ears.
It truly is a fundamental of successful real estate.
- Write down your wish list of features and facets of your dream community.
- Do that before you visit the first community (if you can) to avoid swaying your vote!
- Schools, restaurants, leisure, shopping, kids play, safety, tranquility/liveliness are great starting points!
- Consider the things that your current community lacks.
- Consider the things that you love about your current community.
- Remember that excessive commuting distance is one of the most common ‘triggers’ for a house move.
- Create a shortlist of possible neighborhoods (ask a realtor for help too!)
- Visit the neighborhoods on your shortlist at various times of day and night
- Traffic, hustle and bustle can all look different on a sleepy Sunday than a rushed Monday morning stuck in unexpected commuter traffic!
- Once you’ve assessed your wish list and short list, try to be fair to all of the members of your family
- Be prepared to compromise, but never sacrifice any essentials when you make your final choice
- Consider what the future will bring to a community. It may develop briskly with new amenities adding value, or taking away the feel.
- Great research is almost as good as that magical crystal ball, a key to any great investment!
- Experience the sights, sounds, smells and tastes of your next potential neighborhood.
- As previously mentioned, experience as many hours of the day that you can!
Only pay for what you and a future buyer would appreciate!
Ensure that the home has everything that you might need, but don’t go crazy adding specialist features that may be of value to you alone.
- That loft conversion with a built in model train track is going to detract value for a future buyer.
The new owners will incur costs ripping it all out to make the house ‘normal’ again and that will be reflected in their offer.
- By all means make the house yours to use, but consider the future buyer when adding upgrades and extras.
- Keep the materials and decor as neutral and tasteful as possible. Perceived quality can be much more affordable than many people think.
- Consider how other homes in your area are designed and finished.
If you go too high above them, you might not realize that additional expense on resale.
If you go too far below them, you may not get a resale at all.
Keep some money aside for a few upgrades in year one!
Unless you are buying a custom built home, chances are that you will move in and quickly realize things could be better.
Avoid doing too much in the first 6 months.
Live with the home and hold onto your cash for as long as you can before making those upgrades or additions.
What might seem a problem during move in, can dissolve away rapidly as you become accustomed to the property and its character.
Having those funds available will ensure that any unforeseen issues or more valuable upgrades can be dealt with swiftly.
Keep the home in great shape at all times!
Always also bear in mind that there’s no substitute for keeping the home in good order throughout its useful lifetime with your family.
Try and avoid waiting until resale time. The repair bill might be too big to execute in time for those first viewings.
Fresh paint, baking bread, vases of flowers and hot roast coffee are all magical tricks to sell that home at a great price!
View our list of homes for sale in Reunion Resort, Orlando