Believe it or not, in real estate every properties that we own could be the asset for investing purposes. And yes, people do invest because they want to gain profits.
I believe owning a house is a common thing today. We can see most people own at least a single unit of house nowadays thus I decided to share some tips on how to get profit from a house.
There might be some reasons which make you decide to move from the house that you owned. Leaving your house without making any profit is a loss. It’s time to get some profits – the real profits.
The first thing to do is checking the condition of your house. Emphasize on systems that might cost a large amount of money to repair such as electrical system. Don’t forget to check if there any damages such as leaks. Damages have impacts on your house structure and value so make sure you are able to handle the problems in hand. List the improvements that you should make. Determine if there any fixtures that you need to replace.
Always remember that profits is the most important thing to be considered in selling your property. Make sure your works including repairs and improvements will give benefits to you.
Choose the option which is suitable for you and your house – to sell it or to rent it. Determine the price through the value of your house. Buyers/Tenants will look for the value of your house and compared it with the price that you offer. Try to compare the price based on similar houses or the common price range in your neighborhood. If you are not satisfy enough with the price that you had determined, look for real agents and they could help you in determining the price and getting buyers/tenants for your house.
Include all involved costs such as moving costs, maintenance costs and other costs in determining the value and price of your house then calculate for the profit range that you want to get. Make sure you are able to get profit by investing in your house thus the price must be greater that the operational costs. Set the profit range that you want to achieve for example 10-20% of the house price. Don’t set too high or low for the profit range.
This is some tips on how to get profits from a house. You might double these tips for 2, 3 or more houses that you own. And do remember to consider about profits as well as value of the house.
28 Comments
Find a good builder that you can trust, then you can use him or her on your projects with future properties.
Nice idea. There’s a lot of licensed builder out there but the most important thing to find the good one.
There is no need to do expensive renovation,
Sometime some minor changes can raise your home value.
Paintings on children’s room, new flowers at the front, painting niches and using light smartly.
I do agree with you. Using expensive renovation will make it costly. Cheaper renovation can give you more profits!
Houses and property are probably the biggest investment we will ever make, so making profit on your investment is vital, nice tips.
Agree! And the profit is higher too!
It may also be a good idea to get a professional inspection to properly assess the condition of the property and get an idea on repair costs involved. I walked away from at least 3 properties before I found my last home!
Yes, it’s a good idea and getting professional inspection service is recommended. I wonder how some people buy their properties without really doing inspection on it.
I’m glad you mention that you need to factor in the cost of improvement works that have been undertaken on teh property. Some people just look at what they bought for and what they sell it for for getting that they’ve spent thousands on home improvements.
I agree. Look at the cost and value, not just what you put. This is crucial and little mistake might let you suffer in the end!
I’ve seen people make this mistake and it’s not pretty. They put so much work into purchasing and fixing up a home only to lose money in the end.
If you decide to buy a vacation home, there are many websites that will promote your property with pleasure and possibly your side income can be great. About 6 years ago I both my holiday apartment is Shanghai and I build my factory close to it. Now I rent my home there and as well my commercial building. My home was expensive but my factory was build from metal profiles which was very cost effective way to start business there.
That’s great, John. And thanks for sharing!
This article is good. It’s really useful for me.
Thanks 🙂
People generally put their bucks because of profit in real estate.
Absolutely!
It is important to check the rates of the the area before investing. If there are any other important projects coming up in the area like an airport or a railway station which can boost the prices and one can make good profit.
Totally agree with above post. Right now in Kyle, TX there is a lot of development going on and if you can find a home for the right price, there could possibly be a huge hike in values within the next few years. Although, im against buying and holding right now. Market in Austin has stayed pretty flat and there isn’t much money to be made. Not only that, not worth the headache of being a landlord.
Deciding to rent or sell a property is extremely important. If you have a house when the market is low, it’s better to rent. After you’ve held onto it and you’ve watched the equity grow, you can get a good profit out of it–especially if you watch the market and sell before you see the next bubble burst.
Remember when we had this last bubble burst? Everyone was refinancing like crazy, taking money out, using HELOC’s, getting ARM mortgages that were maturing, and the list goes on. Then the news started mentioning that there could be problems in the real estate market in the future and people started talking about it when it just began. That is the right time to sell in my opinion. Don’t wait when it gets to that point and you’ll get as much as you can for your house.
I can tell you from personal experience that good landscaping bumps up the value of any home. Add a little curb appeal!
Very Honest post. Factual and Reality. Great Post!
Thanks for sharing. I agree, you really have to determine if there any fixtures that you need to fix. Profits are really important when selling your property. I have a house and sold it last year, it got a real profit. You don’t need to renovate expensively. Just check for any damages in your house and have it fixed.
Curb appeal is definitely important when trying to sell a house. I agree that you should get it ready to sell but you must shop around and watch your cost so that you do indeed make a profit from selling your real estate.
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