When buying a home, your decision making process is largely impacted by your emotions, your lifestyle and your personal preferences. But a small portion of buyers are not buying real estate for themselves; some are buying a house as an investment. If you’re considering a house as a possible investment property, you’ll want to walk into the process with a different approach than what you might use if you were buying your next home. That’s precisely what we’ll explore in today’s article from Southern Connecticut Realtor Judy Szablak, of Coldwell Banker Residential Brokerage of Westport.
What Should I Consider if I’m Buying an Investment Property?
In Southern Connecticut, it’s most common to encounter investors who are performing a “fix and flip” or are planning live in one portion of the property, while renting another portion of the home or an in-law style unit. Multi-family homes are also an option, although they are not as common in this region as they are in other areas of the nation. For homes that are located on Connecticut’s coast, there are a growing number of real estate investors who are acquiring beach-front properties for use as a vacation rental. This practice has gained a fair amount of momentum as AirBNB has become more mainstream.
Whatever the case, you’ll need to evaluate the property in a slightly different way if you’re thinking about maintaining it in full or in part as an investment property:
• Put Your Emotions Aside — It’s vital that you put your emotions on the back burner and evaluate the home from a business perspective. This can be a challenge in cases where you’re seeking a home with an in-law apartment, for an arrangement where you live in one area, while renting the other section. Emotions often prompt us to make decisions that are less-than-ideal from a financial or business perspective, so it’s important to be cognizant of the emotional pull that occurs in a home buying equation and work to ensure that you focus on the facts and the numbers.
• Evaluate the Condition — A home inspection is essential for a real estate investor, even if you’re planning to live in the house and rent the guest house or in-law unit. An experienced home inspector can identify any areas of the home that are in need of repair or replacement. We tend to be more forgiving when we discover a flaw in your dream home, whereas real estate investing is a business decision, so there’s a greater emphasis on facts, figures and ultimately, your bottom line. In this same vein, it’s important to get accurate estimates for any work that needs to be performed prior to move-in.
• Will the Property Accommodate Renters? — If you’re considering a property where you plan to subdivide the home or rent out an in-law apartment or guest house, then you would need to realistically consider if this could be achieved in a comfortable, practical way. Can you subdivide the house with relative ease? Is there sufficient parking available? Would the property feel overcrowded?
When seeking a real estate investment property, it can be very helpful to work with an experienced real estate agent who understands your needs. A Realtor who has intimate knowledge of the local real estate market may also prove to be a valuable ally as you strive to identify the homes with the greatest potential for profit from a salability or rentability perspective.
Trust Your Home Sale to a Top Southern Connecticut Realtor
If you think you’re ready to buy a new home or sell your existing home, now is the time to act, as interest rates are slated to rise in the near future. And what’s more, the late spring and early summer is an ideal time to buy or sell. Southern Connecticut real estate expert and seasoned Realtor Judy Szablak is here to offer guidance, helping you avoid scams while ensuring that you enjoy a prompt, efficient transaction. An agent with Coldwell Banker Residential Brokerage, based in Westport, CT, Judy Szablak has been in the real estate field for decades. She specializes in the purchase and sale of single-family homes, new construction, luxury properties, condominiums and even seasonal or rental homes.
Serving clients since 1984 and recently amongst the top 6% of Coldwell Banker real estate agents worldwide, Realtor Judy Szablak has more than 30 years of experience working in the Southern Connecticut real estate industry. She works with clients in a number of Southern Connecticut communities, including Westport, Trumbull, Weston, Fairfield, Norwalk, Stamford, Easton, Wilton and Rowayton amongst others.
Browse Judy’s property listings to see if your new home is amongst her listings! Or, if you’re ready to sell your Southern Connecticut home, turn to the best. With over three decades of experience selling homes in this area, Judy knows exactly what it takes to ensure a smooth and stress-free home sale. Call Realtor Judy Szablak today at 203.257.5892.