Real estate is a great platform for investment. Although this is true, you may need some advice before you involve yourself with any real estate venture. It is very important to do some research on the current trends of real estate before you start investing in the same. There are some tips that can help you have an understanding of the market.
To start with, not all renovations are equally created. Statistics have shown that the best return for investment is a bathroom remodel. It usually costs $3,000 and will return $1.71 for every $1 spent. The poorest home improvements in terms of value are finishing a basement and kitchen remodeling. For example, a top of the line kitchen renovation may cost you about $22,000. You will only get approximately $0.51 each dollar spent.
The time to buy or sell is equally important as the cost. The worst time to sell in New York is the second week of December. Listings at this time went for 2.8% less than normal. The greatest time to sell is March as this is when homes sell for 2% more and even sell faster. It is therefore prudent to know the best and worst times to buy or sell in your area.
Let’s say two similar houses were sold in 1997. If one was near Starbucks, it would have gone for approximately $137,000. The same home not near a Starbucks would cost $102,000. One and a half decade later, the average home would have gone for $168,000 at the average appreciation rate of 65%. The one near Starbucks would have sold for $269,000 as the appreciation rate is 96%.
It is therefore important to ensure you make the necessary consultation before making a real estate investment. Boraie Development is a good example of a real estate company to consult. They have a 3 decade track record making it the best developer in New Jersey. The company uses their own capital as well as private capital sources like commercial banks as their main source of funding.