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Learn How To Protect Your Most Valuable Personal Investment

The first question we need to answer is what this investment is. You probably have some ideas. For instance, you might think that your most valuable investment is your pension fund. While the 401K is important it’s not quite the most crucial investment in your life. It’s certainly not the one that can provide you with the greatest ROI, often without even trying.

Nope, the most valuable personal investment that most people have is a home. You have probably heard about property investments before like for instance going in as a group to purchase a block of apartments. Or, how about investing in a holiday home. Well, a personal home is the easiest property investment that you can make. Beyond that, it could also bring fantastic future profits if you treat it right. To do this you need to protect the investment that we’re talking about here. A piece of property is just like any other product that you own. It can rise or grow in value. It can become outdated or fall into a state of disrepair. Various other factors can also impact the value of this personal investment.

However, to understand what’s necessary to protect this valuable investment, we need to start at the very beginning, We need to think about when you purchase this property.

Getting The Right Home

You should consider a lot more than practicality and comfort when you are buying your first home. For instance, you’re going to need to think about whether to buy a new home or an older property. While older properties are often available at lower prices. It’s important to understand that they don’t tend to grow in value. As well as this, they will usually be riddled with issues that you’ll need to fix if you want to sell at a good price. The age of the home, for instance, may mean that asbestos was used as insulation. This is a property price killer because that material has now been linked to the development of methioloma. A new build then will be the best option if you’re thinking about that future sale and you should be.

But the age of the home is only one of the factors that you need to consider. You need to think about the state of the area where the home is rather than just the state of the home itself. Remember, you can fix up a home that has seen better days. You can’t fix up the area that it’s been built in. THere various telltale signs that an area is dying. Crime rates will be high and these are also the places where homes for criminals are set up before they are reintroduced into society. You will also find that there is a lack of funding for infrastructure which means that there might be potholes in the road as well as other issues.

Don’t forget though that you also need to consider future prospects. When you sell your home, buyers will be looking for a place that provides job opportunities. That’s why you want to avoid investing in a home tied to the oil industry unless you will be planning on selling within the next ten years. Even then it could be dicey.

You might be wondering how on earth you can know all this information before you buy property. Well, crime rates can be checked online and there are plenty of reports about the state of an area and indeed, it’s economy.

Keeping Things Up To Date


Now let’s assume that you do purchase a home in a great area. There’s a great school closeby and the crime rate is close to 0 percent. There’s also a solid infrastructure and the job market in the area is actually growing. You’ve made a great choice, but now it’s time to think about the home itself. If you opted for a new build, you’ll be pleased to hear that the home will already have a modern design. Buy an old home and you won’t be so lucky. In fact, you’ll have to set about renovating it straight away.

Even with new homes, you should be making small changes every couple of years. Keep an eye on home trains and renovate or remodel your home to match. For instance, you might want to think about removing the carpet and instead of putting down laminate flooring. Laminate flooring has become very popular with modern buyers because it’s cheap to install and easy to maintain. In other words, perfect for millennials. This is just one of the changes that you could consider making to your property.

There are many others, some of which will add tremendous value. For instance, one of the most sought-after features for a home is not a cosmetic change but rather a practical one. 90 percent of home buyers are looking for properties with higher levels of eco efficiency. As such, window upgrades could be in order if you’re desperate for that sweet first offer on your home.

Why should you make changes every couple of years at least? When it is time to sell you don’t want to have a lot to do to get it ready. While it’s possible to completely renovate a home a few months before putting it up on the market you just might have your hands full with other areas.

Fixing It Up


When you own a home after a year or so, you will notice certain subtle signs of wear and tear. This is to be expected with a home that is lived in. It can’t look like a show home forever but that’s a problem because that’s exactly what buyers on the market have come to expect. When you have been living in a home for four or five years, things change again with bigger breakages and issues. To you, they’ll probably be part of the home’s character but to a potential buyer, they will be quite different. Indeed, many will demand repairs are made before they proceed through a sale. This can cost homebuyers thousands and eat away at any profit they would have seen from the sale.

Again, it’s worth adopting the same strategy that you had with improvements. You need to make repairs on an annual or even semi-annual basis. By doing this, you won’t find that your home is filled with issues that need to be repaired and fixed just before a sale. Checks will be essential for this because you won’t always notice everything. Two big areas where it’s worth paying for checks are the heating system and the roof. Both can have minor issues that grow overtime. Both can be significantly reduced as long as you spot them early and an expert will provide you with the info you need. These checks aren’t that expensive and will save you a lot in the long term.

What happens if you are unable to make the fixes. Companies like Wren Realty can provide you with advice and expertise on how to sell a home that needs major repairs. As long as you put your expectations of profit in check, you won’t have any issues shifting it on the market. There are always people looking for a fixer upper, you just need to know how to find them.

What Do You Stand To Gain


If you do everything right, buying in the right area, keeping things modern and well maintained, you can gain a lot from a future property sale. How much exactly? That’s difficult to say but you could easily see as much as a twenty percent profit. Some people see a lot more with their home doubling or even tripling in value. It depends on how long you keep the home, what happens to the local area and whether there is a housing boom.

It is for this reason though that you may want to target large expensive changes that can add massive levels of value to your home. One example of this would be a loft or attic conversion. This can add twenty percent to the value of your home and can be completed for at most ten grand. Ten grand will be enough to give you a solid, quality conversion that buyers will love. While this might seem like a steep price it’s nothing compared to the level of profit it could bring.

The Final Piece Of The Puzzle?


That’s a matter of selling at the right time, essentially when the iron is hot. It’s about knowing when the best time for the housing market is and using it to your advantage. You should be researching the market before you think about selling. The easiest way to do this is to look online at housing prices in your area. If they are low, it’s best to hold off. The housing market will always recover eventually, even if it takes time. If you find yourself in a situation where you need to relocate, consider renting. That way, the first property doesn’t become a drain and you don’t lose out on what could eventually be a highly profitable sale.