Let me tell you about a question that I get asked a lot
I'm sitting with a client for a counseling session (Zoom) that Corona. Dressed like for a regular meeting of course.
I explain to her about my escort plan and show her the investment plan for an investment property I have located, and the first question she asks me is: “So what is the secret to a good deal? How do you know what will make a profit and what will not? ”
And she's not the only one, a lot of investors ask me that question.
So let's start with the fact that it's not that simple and it's a whole and complex Torah but if I had to decide what's most important ', then LOCATION LOCATION LOCATION
When we want to make a purchase of real estate, one of the most important elements for us is the area where the property is located.
If we want to buy a property for investment, we will strive for the property to be in a good location, where future tenants will want to live. If we want to buy a home for us to live on, the interests will be the same and maybe even more important to us will be the quality of the investment area.
What are the things that are important for us to check in the investment area?
Let’s start with the fact that there are differences between buyer and buyer. There will be those who will emphasize proximity to workplaces, and those who will focus on the educational institutions in the area. There is no right and wrong. It is important to note that we put our emphasis on the things that are important to us before looking at properties and choosing them, so we can filter multiple properties and not mess with them at all and save time, and we all know how important time is in the real estate world in general.
How do you check the area of the property before investing?
There are many tools that can help us review the investment environment and make informed decisions. For example you can use the tools of the areavibes site. This is the site I use today, it is very accessible and very intuitive in its use and the data it presents.
Importantly, this is a tool that will give us a macro-level snapshot. Is good when we want to make a relatively quick choice between options and disqualify the inferior or less appropriate ones. Next we will delve deeper and focus on the area we have marked for ourselves.
The site has a very simple score bar - A is the highest, and F is the lowest. There is another internal division where each letter can have both a plus and a minus.
What are the categories for examining the property environment?
Amenities - Proximity to roads, parks, transportation, supermarkets, proximity to the subway and more.
Cost of living Cost of living - the cheaper the area, the lower the score, but the higher the score. Cheap living area is a positive thing in general, it is important to understand the data and highlights that are important to us.
Crime Crime Percentages - Ratings and Scores on Crime in the Area.
Employment - Proximity to places of employment, unemployment rates and more - indicates the strength of the environment and the population being examined.
Schools - The quality of schools and education. It is very important whether it is a property for us to live in or an investment house.
It is important to understand. Like I said, the tool does not give a complete answer to make an informed decision, it helps us in choice and moreover, marks red flags. If we see at the initial review that education is F and employment is F and crime is F, we will probably know not to continue to explore investment options in the area.
Hope I was able to enrich you
Write to me below, what do you think is most important when it comes to choosing a property?
For a successful investment life, Nir
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