The property market is in a regular zig zag of ups and downs regarding value. Many home owners hold concerns over whether their home or investment property will devalue over time. There are many ways to ensure your property is safe guarded so it does not drop in value during the next property fall. However, many people are still not aware of these. Have a look at some of these tips to ensure your property is protected from being undervalued during a property crash in your area.
Deposit
This may sound obvious, but to ensure you don’t lose money on your property, or not overpaying on your mortgage it is best to put a deposit larger than the standard 10%. Avoid opting in for a zero deposit plan, because in the long run, you may end up paying a lot more than you would for other properties in your area.
Buy for the Long-Term
If you don’t plan on keeping the house for more than five years, don’t buy it. It often takes anywhere between 5-10 years for your property’s worth to rise. If you sell within the first five years of purchase, you could be losing money rather than gaining capital. To get the most out of your investment, consider holding onto it for over five years. For further growth in the price, you may even want to consider renovations. This will see the value of your home rise further. If you are unsure about your investment options, you may want to consider booking an appointment with a property investment company to chat about your options.
Location
Consider where you’re buying and when you buy. If the area you are considering purchasing a property in has high crime rates, you may want to consider another location. The top things to look for when you buy a home is whether there is a lot of young families around, crime rates, distance and access to schools, shops and public transport. Being in an area with a lot of young families suggests growth in the area, while the lack of crime rates ensures more security in your home. The distance and access to facilities help with driving up your property’s value when you choose to sell.
Tenants
If renting your property out, ensure you choose the perfect tenants. Young families are always an excellent choice, as they respect the home and treat it as it were their own. Although university students can be good tenants, they may also be a risk if you are looking for someone to respect your neighbours. If you are looking for long term tenants, young families are the best option for yours and your property’s security.
Regardless of whether you are purchasing a home as an investment or as a place to live in, there are many factors to consider to ensure your property does not crash and you lose in the long term. Providing a higher deposit is paid, you are buying for the long term in a decent location and the selection of tenants if you decide to rent will all have an impact on your properties value. Hopefully, with these tips, you will be more knowledgeable, and the purchase of your home will be easier.
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