House and Land – 4 Tips For Buying a House Or Apartment

You can save a lot of cash by doing some research and learning a little about housing and perhaps auctions and land values.

1. If you want to buy at auction, attend a few first; get a feel for the way they work. In hot markets, the bidding can be furious, but remember not all bids are genuine. Some states allow vendor bidding; this is an agent bidding up the price to try and get some momentum going.

Be very clear about exactly how much you will spend, and ensure you have your bank finance in place because when you enter into an auction, it is legally binding. You can’t be the highest bidder and also then change your mind.

In a slow market, the auction process can give you a sense of how low the vendor is prepared to go. In these markets, most houses are sold at the auction.

2. Know the area and also the mean price (average price) of real estate. If you can find a house or apartment like the Martin Modern Singapore in the reasonable condition that is well under the mean value, you are likely to have a good deal as long as the property is sound.

It does require some research to be clear. E.g., in one stress in our area the mean value on one side of a particular stress is about $1,100,000, but on the other side of the street, it is only $750,000. Why because one side of the road has sea views.

3. Be careful of homes that back on to a park or have an easement running along the back alignment. These areas while appearing to offer extra privacy are a greater security risk and also your insure mar require extra security measures.

Check your local authority for historic water levels. Has the property ever flooded? Don’t let looks fool you. The peak height of most floods is beyond the comprehension of the untrained eye. One property we owned had a water easement behind the property. It was 30 yards wide and 1 yard deep. We felt secure until it filled the first time we had torrential rain. All that saved us was that the water ran away quickly and never broke its banks.

4. Have the property alignments properly surveyed if the boundary pegs are not present or if you have any doubt about the accuracy of their location? A buyer recently spent $4,000,000 on a beautiful rural property only to discover later that the high gates and front fence where outside his property and the water course was a council easement.

If you want to have super profit from your real estate investments and you are a small investor then stick to free standing homes on larger allotments, or create a syndicate and buy an entire apartment complex, so that you can exploit the potential in future re development.

Remember, keep the investment simple and refrain from complicating it. Most profitable investments are simple yet unfortunately, we, the investors, complicate matters under a misguided belief that it has to be more difficult.