The First Checks You Should Make In Any New Property Investment

The First Checks You Should Make In Any New Property Investment If you’re looking to start a career or business in investing in property, whether as a landlord or as a flipper of houses, then you know how to spot a good investment. It’s not all about how well you can market and manage your properties, but also about finding those that cost less to get ready for market than they’re likely to get you. As such, you need to keep an eye out for some of the pesky issues that can end up costing you dearly. Here, we’re going to look at a few crucial checks you need to make before any property investment. The plumbing If there are any issues with the plumbing, even if they’re still lurking beneath the surface, there’s a good chance that you’re likely to end up having to pay for them, if you don’t end up paying for the water damage that they cause instead. Hiring a good property inspector should help you spot any issues in the plumbing, but if you’re taking a DIY approach to inspections, there are a few key areas you should look at in particular. Check the water heater’s age, the toilets for leaks in the base, water supply pipes for signs of corrosion, the inside water lines for signs of discoloration, and don’t forget to check all the taps and the overall water pressure. The electrics The other utility is naturally just as important. Faulty electrics will lead not only to the lights suddenly going, but to a serious risk of injury, which you could be held liable for if you’re looking to host tenants in your new property investment. When it comes to the electrics, there is no other option than a professional electrical inspection. Not only are you not likely to be fully qualified to carry out such an inspection yourself, but it could be potentially dangerous. We’re trying to avoid not only shocking costs after purchasing a property, but actual electric shocks to your person, as well. Play it safe, hire a professional when you need one. The efficiency While it’s not quite as important as the plumbing or the electrics, the energy efficiency of a home is becoming a more important factor in its marketability. Potential buyers and tenants are very likely to request that you take the necessary steps to make a home energy efficient before they move in. You might be able to be some financial assistance through schemes that provide free insulation or energy efficient boiler and air conditioning replacements. It’s not wise to make that assumption, so take an energy audit. From there, calculate what you would need to invest in to make the home more efficient, then consider if that investment is worth making. Sometimes, it’s better to give up on a property investment idea than to simply continue to sink money into it. Signs of water woes Some kinds of damage can be repaired easily and cheaply enough, while others may become the costliest part of the entire project. Being aware of that is crucial when you catch the first signs of water damage. It’s an easy enough problem to notice, with damp musty smells being particularly hard to ignore. If water damage has spread through things like dry wall or the ceiling, patching them up and replacing them is easy enough. However, if it has seeped deeper into the home, such as spreading throughout the roof and the insulation in the attic, then that could be a much more costly problem. If you catch a sign of water damage, make sure you arrange a thorough inspection so you can be fully aware of just how much it might cost to fix it. Avoid those structural problems When it comes to structural problems in the home, like cracks in the foundation, then that aforementioned water damage is likely to play a role. There are plenty of signs of structural damage you should pay attention to, if you don’t have an inspector who is likely to notice them. This includes tiny holes in drywall and wood, dry mud tubes on the foundation, problems with shutting or opening doors in the home with no clear mechanical reason, and noticeably sloping floors. In general, structural problems cost way more to fix than they’re worth, so you should avoid them when possible. Make sure you don’t have any uninvited guests Pests, little and large, are a problem is just about every kind of location. Even apartments high above the ground floor can be haunted by infestations. There are a lot of different kinds of pests, each of which can leave their own distinct warning signs, from hair, scratches, and scattered nesting material to droppings left around and the ammonia smell of urine in the home. Rather than trying to learn about all the pests your potential property may be vulnerable to and looking for any of their signs, it may be more effective to enlist a pest control team. Depending on the type of pest and where they’re found in the home, it may be easy enough to eliminate or at least get them out of the property. What about the neighbors? When it comes to renting out or selling a property, you’re marketing more than the home itself, you’re marketing the experience of living there. Which means that who they’re living beside is likely to play a factor in the decision that they make. Take a look at the neighbors’ yards when you’re looking at the home. If they’re incredibly disheveled, full of trash, or otherwise unsightly, it’s likely to bother any potential buyers or tenants even if your property is immaculate. You can try and talk to the neighbors or find other ways to deal with their eyesores, but it can still be a problem regardless. Is the market moving there? One of the key tips when it comes to building your property portfolio is to look at the trends of the market. The value of homes and increase and decrease of property prices in a given area is only one factor you should look at. There are also plenty of statistics on where people are moving to, both from city to city and from state to state, you can familiarize yourself with. See which towns, neighborhoods, cities, and ZIP codes are attracting more people, and which places tend to see a lot more emigration, instead. Finding the chance to capitalize on a popular new spot before other investors learn about it is the surest way to profit in the business. Check the area Don’t forget to make at least a cursory check of the data regarding the town, city, or neighborhood you’re considering buying in. Census and crime data are widely available for most locations and you can be sure that any potential buyers are going to be looking at it. Don’t forget to look at what features and amenities are nearby, such as schools and retail centers. These can help drive up the value of a property, as well as highlighting which market they’re best suited for. For instance, families are a lot more likely to look for homes that are closer to schools since they have kids that need to attend them. Areas that are high on crime are likely to be worth less, too. If you want to get into property investment, then always being aware of your level of risk for each investment is essential. Hopefully, the tips above help you develop the habits you need to manage it.