Property investment opportunities may be plentiful, presenting themselves at any time. But how should an investor know whether or not it is a genuine opportunity rather than just an impressive marketing strategy? Being shrewd is the key to it.
Given the world's recent and very severe credit tightening and a dramatic decrease in property prices, it's not surprising that many investors are implementing ways to turn the crisis into profit. This means using a "bargain" to sell a potential property investment opportunity is not out of the ordinary these days.
Finding a bargain is still easy to do, especially in less sought-after areas, as well as the lower and mid-range price brackets. However, identifying genuine opportunities to invest in property with good deals can prove extremely difficult. In order to find the very best, investors need to carry out detailed research on an on-going basis, until the right one presents itself. Familiarise yourself with potential investment areas and make new contacts who know them well.
And don't be fooled. Property opportunities boasting massive price reductions are not always what they seem. Thinking ahead will get you the best investments. For example, choosing a property that has 40% deducted from its asking price may appear to be an excellent deal, however, by opting for a property with just 10% deducted from its asking price, you could make an even bigger profit when the market begins to strengthen.
Waiting for prices to plummet further, despite the current state of the market, does not always achieve the desired result. There is huge variance above and below average asking prices and within this there are some opportunities that won't be repeated even if prices do decrease further.
When you know you have found a genuine bargain, take advantage of it. Act quickly and decisively as, if the market is slow but other potential buyers are looking for the best bargains, they will purchase properties that appear to be a 'good deal' too and you could therefore be losing out.
Look for investment opportunities which look likely to appreciate when the market picks up and you will achieve a sound investment. As with any investment asset, prices of property depend on the supply and demand of their market. If you're thinking of buying into the residential market, be sure to hold up its most attractive prices against the potential for business, job and income growth of that particular area.
Whether you're thinking of buying property as a primary, second home or purely as an investment, make sure you are in the know when it comes to the local community's average income, potential growth and population. These three factors are crucial when looking for property investment advice and opportunities.