It cannot be denied that mortgage interest rates are very low at present. And yes, the prices of houses are still low enough to be very interesting. However, it is important to understand that these two factors do not automatically make any property a good purchase. Yes, we are currently in a buyer’s market. However, you do have to exert due diligence before you buy. There are plenty of red flags out there telling you to move away from a purchase. Sometimes, this means that you need to fix a problem, but at other times it means that you shouldn’t buy. Two things are of true vital importance, however.
Firstly, be very careful before you buy a property listed as a “fixer up.” These properties are often very cheap, which makes them very attractive. Often, we believe that the things that need fixing are things we can do with our own DIY skills. However, you are likely to find that you will need to bring in qualified professionals to really do the work. Unfortunately, these professionals cost a lot of money, often more than you may have budgeted for. Next, properties that have had DIY repairs can also be a red flag. A DIY job can look as if it was completed properly, but you can’t see inside the structures where it is likely that a lot of problems exist.
Secondly, you need to know whether the property you are buying is a regular sale, a short sale or a foreclosure sale. Indeed, these properties tend to be the cheapest, but that is because they often require a lot of work or because the entire neighborhood is declining.
When push comes to shove, you are the only one who can work out whether or not you want to purchase a property. Plus, it is certainly true that a home with problems is often a home that can be sold at an even greater discount. However, you must also be very careful that you aren’t buying into a money pit, or a property that you will never be able to sell again. Whether you purchase a property as an investment or as a home, it is always going to be a building that somebody will live in, and you need to make sure that the quality of life in that property can be pleasant and enjoyable. Naturally, you do also have to look at the property itself, but the importance of looking into the neighborhood cannot be denied either. In terms of the condition of the property, you can simply ask a property inspector to come and check it out, after all. This is different than a neighborhood inspection, which really requires a personal opinion and feel, something that only you can do and decide upon.