Are you an investor looking to expand your real estate portfolio, or perhaps someone wanting to acquire residential property to rent out for extra income? You probably believe you can perform your own due diligence to avoid getting stuck with a lemon but consider proceeding with caution.
Those with a professional background in real estate may be capable of vetting local properties. However, professional guidance can only improve your protection. It also helps to understand what makes a sound property investment in the New York City region.
What are the basics?
An orderly neighborhood with great schools. An exploding local job market. A low community crime rate. All these are basic signs of potentially profitable property investment, but what else do you need to know?
How about infrastructure spending?
Areas without infrastructure or the capacity to expand existing infrastructure may lose value over time. Communities need subway systems, bike paths, highways and other municipal features to support continued growth. Consider looking elsewhere if the municipality does not offer support or expansion of the local infrastructure.
How about neighborhood development?
Although many frown on nearby construction when purchasing real estate, such activities point to a growing neighborhood worthy of an investment. As developers complete these projects, homeowners, investors and businesspeople can expect the value of their purchase to grow along with the community.
Whether you plan to occupy the real estate or use it to supplement your income, you always want to avoid unsound investments. Knowledge of the property, the market and the legal ins and outs of New York and Jersey real estate transactions can strengthen your protection substantially.