Building Wealth From Real Estate
Investing in real estate can be hit or miss but if you create real estate you are probably onto a winner. Building a home to make money is a great investment opportunity, if done correctly. Building a house is a huge financial undertaking notwithstanding time and effort. With some good advice and a bit of savvy you can turn a real profit from the real estate busines.
Back to basics – ask yourself ‘where do you want to build?’ because some neighborhoods are just more profitable than others. Take some time to research the area where you want to build your house; what is the crime rate, what amenities does it offer, what is the value of the existing properties in the area and what makes them that valuable? Get this bit right before you even start planning because the house isn’t the only thing you’re trying to sell!
Ask an expert -once you know where you want to build find out how much per square foot it is going to cost you to build your house. You want to keep the cost of the build to the minimum to maximize the return so it’s a trade off between a nice area, expensive land and a low cost build that will deliver your a great profit. This is something only a professional can help you with so don’t try and make this calculation on your own, seek advice.
Do It Yourself – another way of keeping construction costs down is doing some of the work yourself. That doesn’t mean you have to put on a hard hat and start laying bricks – even small things like laying flooring, installing fixtures and fittings can make a big difference cost wise. It may be tempting however to try and do a lot of the work yourself but be warned this doesn’t always reap financial rewards because unless you are experienced expensive mistakes can happen if you get it wrong.
Be material savvy – there are many cost-effective ways of delivering beautiful homes so make sure you know the return options on a wooden construction versus a steel buildings. Research the durability and flexibility of each material as well as the time it takes to build before you commit to a specific option. If in doubt ask your team, get examples and visit houses made from your prefered material and make sure they reflect the look and value of the house you are trying to build. All of this could have a real impact on your bottom line.
Be competitive – hopefully the build goes smoothly and you have a great house at the end of it ready to become someone’s home. Another great tip for flipping a house for a profit is to ensure you price it comparatively with other homes in the area. This is where your initial plans will really pay off. Employ a realtor to help get the best price for your hard work and then all you have to worry about is where to put the money you’ve earned next.