Real estate can be an exciting industry – one which demands that buyers stay updated on current trends. This can be particularly vital to investors looking for a robust and revenue-generating real estate entry. More often than not, understanding the market fundamentals will help the buyer sketch out opportunities and weak points. If a buyer is able to identify and lock in on a smart real estate buy when the market heating up, it’s largely because of their ability to seize the opportunity.
Here’s what potential buyers can do.
1. Knock-down rebuild
One of the bigger benefits that come with knock-down rebuild is the opportunity for the buyer to stay within the same neighborhood. They can tap into bargain buys where an older property can be picked up at the land’s price and knocked down to rebuild. If homeowners really like their current neighborhood, the local community and amenities, a knock-down rebuild can be a great option.
2. Scout for concessions
Concessions can signal a strong market high. Albeit seeing rental growth and high occupancy, concessions through free rent can boost sales. Better yet, the buyer or tenant stands to benefit if the free ride is due to an oversupply in the market – this enables more room for the investor to pursue savings.
3. Stabilizing interest rates
Over recent years, the real estate sector has been shying away from capturing a remarkable momentum. Last year, market data highlighted buyers exiting the market as their current mortgages were pitched to be lower than what the buyers would be able to snag on newer loans. By the start of 2019, this soon slipped to the background and rates began to stabilize, helping drive a better market.
4. Do you find ample spam crowding the market?
If a potential buyer, after studying the market, does not close in on any spam properties – it could signal that the real estate is riding a good wave. Spams are red flags to notify someone that a dire real estate scenario is likely.
5. How can you gauge if the market is downsizing or on an upward climb?
The best bet is to pay attention to the brokers – what are they angling more towards? Are they quoting different market bets to buyers and sellers? If you want to gain a good perspective, pretend to be a seller if you’re looking to buy and vice versa. Try to bid prices, and talk to experts within the industry. This can help you understand how flexible the prices are and if it’s the right time to make a purchase or sale.