It cannot be denied that mortgage interest rates are very low at present. Plus, although they are rising, home prices are still affordable. However, this does not mean that any home you come across would make a good investment. The market is, at present, in favor of the buyer. However, you do have to exert due diligence before you buy. There are plenty of red flags out there telling you to move away from a purchase. Some of these are fixable, others tell you to look elsewhere. Two things are of true vital importance, however.
First of all, you must be wary of the “fixer upper.” These properties are often very cheap, which makes them very attractive. Often, we believe that the things that need fixing are things we can do with our own DIY skills. In reality, however, they are often things that must be done by qualified professionals. Qualified professionals are incredibly expensive and you may not have sufficient budget for that. Secondly, be very careful of properties that have clearly had DIY adjustments. A DIY job can look as if it was completed properly, but you can’t see inside the structures where it is likely that a lot of problems exist.
The second key factor to look into is for you to figure out whether you are looking at a foreclosure or short sale property. Indeed, these properties tend to be the cheapest, but that is because they often require a lot of work or because the entire neighborhood is declining.
At the end of the day, only you can decide whether or not you should purchase a property. It is also true that if you are looking for a true bargain, then a house with problems is what you are looking for. You do have to ask yourself whether that bargain is worth the potential financial hassle you are putting yourself through. Homes, whether purchased as an investment or not, are places for people to live in, which means they have to be inhabitable. Although it is certainly true that you should look into the condition of the actual property, focusing on the neighborhood is equally important. In terms of the condition of the property, you can simply ask a property inspector to come and check it out, after all. When it comes to the neighborhood, however, you need to have a personal feel, something that cannot be achieved by a check box list.