by Eva Martinez
(San Diego, California, USA)
One of the most important aspects of successful real estate investment is choosing the right properties in which to invest. It is important to choose a property on which it will be possible to make a profit, whether by renting it out as a residential or commercial property or by reselling it.
The current price of a property is one of the factors that should be considered when choosing an investment property. As a general rule, the lower the price the more attractive the property is for investment purposes.
However, it is important to consider why the price is low. If the price is low because of serious structural problems that would be very expensive to repair, or because the property is in a bad neighborhood, then it will not be worth investing in it. If the property needs a lot of renovation work then it may be possible to sell at a profit, but it will be necessary to take into account the cost of the work as well as the price of the property. If the price is low because of the recent financial crisis, then it may rise again as the problems with the economy resolve themselves. This could take some time, however.
Most properties that are currently being sold have seen a substantial reduction in their value in recent years. Some of these properties may have been overpriced and therefore have dropped to a value that reflects their true worth, but others will currently be selling for less than their true value. Buying such properties now could therefore prove very profitable in the future.
Finding a property that is likely to recover its value rather than continue to drop in price or remain stable requires a great deal of research. It is important to find out as much as possible about the history of property values in the area in which you intend to buy and for the type of property in which you are interested. This will allow you to make an educated guess about the future value of the property.
It may be possible to negotiate an even lower price for some of the properties that are currently on sale since there are fewer buyers looking for properties, particularly due to the difficulty of obtaining financing. Any seller with property that has been on the market for a long time, at least 90 days, should be willing to negotiate over the price. Properties that have previously been reduced in price are also likely to be open to lower offers.