If you are in the market for an investment property, then naturally your ears will prick up if you hear or see details of a potential investment property that seems particularly cheap or good value. However, don’t go jumping in to buy it without consider a few important points first. There might be a reason that it’s cheap, the kind of reason that will damage its potential as a good investment for you. Check these points:
- Something unusual might be happening in the area where the property is located – for example, a new highway is about to be built right behind it, the zoning regulations are changing, or a power plant will be built across the street. Get detailed local information before you make a decision.
- If you are thinking of buying in another country – where property is often cheaper – there may be pitfalls that will make your investment not as worthwhile as you hope. Check, for example, the tax laws, ownership laws, the procedure for selling the property later, and so on.
- There might be some hidden damage or maintenance needed on the property. For this reason, it is always good to have a building inspection carried out; if this uncovers the fact that the roof needs to be replaced, then you know straight away why the property’s selling price seems like a bargain.