Quando un immobile e’ un buon investimento
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Today more than ever we are looking for deals.
And in the real estate sector it has become really difficult to talk about a good investment.
Once upon a time, not too long ago, it was enough to shake hands and close our deal. As time passed, it was necessary to sign agreements to seal the verbal promises. The difference lay in the fact that the property was an asset not subject to particular significant changes except at the behest of the person taking over the purchase who could change the premises and external areas as they pleased.
As we get closer and closer over time, the number of mandatory amnesties by public administration technicians to “certify” a whole series of property conditions that must be satisfied for the property to be habitable has increased.
In the last 10 years or so up to today, jurisprudence has had to comply with European regulations which require strict verification of any intervention that has been done, not only by the current owner but back in time, in order to certify what is called double conformity (urban and cadastral planning).
It is therefore no longer enough to make agreements with the owner to buy a house. It is necessary to verify the real state of the property and this is because whatever it is, when you purchase it, you will be responsible for abuses and discrepancies.
WHEN CAN A PROPERTY BE CONSIDERED A GOOD INVESTMENT?
This leads us to use and adopt various criteria to establish whether the property can be a good investment.
Price is not necessarily an indicator of a deal.
There are several considerations to make. In reality there are many and in this article I want to show you the ones that in my opinion are among the most important.
It is common to think that “investment” means the purchase of a property at a “fair market price”.
Yes… when the property corresponds to our expectations from all points of view!
1.If the property you have chosen is the one where you intend to move, the investment can be given by the fact that it is already ready to be inhabited and that it is the property of your dreams. As a result, price may not matter as much as you are willing to pay to live in your ideal home.
2.You could instead consider the possibility of being able to renovate it exactly as you wish and have already estimated the costs in addition to the purchase price and which are within the set budget. Then the purchase price could make a difference.
3.Or the case in which you are looking for a historic property, which has fine finishes. Your investment is in the value of the property and the pride of owning it.
4.We can also imagine the case in which you and your family were looking for the property already divided and which meets your needs for the children, the playroom, the garden for parties, the study… and perhaps close to the grandparents’ house, without having to resort to babysitting or after school. It may not be a problem to have found it at a slightly higher market price, given that it satisfies all your family logistics.
5.If you were instead looking for a property for investment, you would evaluate other aspects, such as proximity to services and the price would be important, given that it should be part of a “costs and revenues” planning.
6.Your focus could be on a property to renovate from which to create your main home and build two others to rent and generate income.
As regards the income, it is necessary to correctly evaluate the area so that it can be of interest based on the type of customer. If you want to rent daily as a B&B, it may be necessary to invest in areas that are popular for tourism and for this reason, the price of properties for sale, even those requiring renovation, is certainly higher. It is true that, once renovated, the rent for rooms or apartments is higher than for properties far from the main tourist centers in demand in the area.
As you can see, the market price and its evaluation undergo significant variations, both objective and subjective, and you must take this into account when you go to purchase a property.
WHAT NOT TO DO IF YOU DON’T WANT TO WASTE TIME AND MONEY
Also on this occasion I reiterate that going around properties, only to discover later if they have the right characteristics, can be a long and expensive search.
Even if you have the possibilities and are not tied to working hours, you want at the same time to visit properties suited to your needs.
Maybe it has already happened to you but try to imagine having taken a day off, having traveled some kilometers to go to the viewing appointment and realizing after a while that that property is far from your expectations.
I have had many clients who vented about the uselessness of making visits without really delving into all the aspects to take into consideration the properties to visit.
I invite you to read the article so you can have clearer ideas on what you need to know to look for the property you want to buy.
