Month: December 2015

Real Estate Purchases Require Enthusiasm Tempered by Analysis

There are a variety of factors that go into the decision to buy a home or to otherwise invest in the real estate market, and it is important to recognize what those precise factors are in order to arrive at the best possible outcome. After all, some of these factors are not always so easily recognized due to the variety of emotions that can exert influence over a decision in a way that leads even the most analytical of minds astray. Developing the ability to control the influence of an emotional response during this process can be exceptionally beneficial, but complete suppression of this kind of influence is not always the best course of action either.

As with many things, a balanced approach to real estate is best. Those who adopt an entirely analytical approach may find themselves living in the home that is most likely to appreciate in value over time, use energy efficiently and require minimal future maintenance, but there will still be something about the home that leaves the buyer unfulfilled. On the other hand, allowing a decision to be guided solely by emotion will result in a purchase that is less than ideal for any number of reasons, leading to potentially serious financial consequences along with a variety of other issues. In the same way that Arizona Home Caregivers are able to balance compassion with careful analysis of the individual needs of those they care for, so too must homebuyers balance their own emotions along with an analytical approach.

How can buyers achieve such a balance and be sure that their emotions are not undermining what is likely to be the most significant purchase of their lives? One of the simplest strategies is to solicit the advice of others, but only if very specific terms have been outlined. This is because the advice provided by others is often no more than a reflection of the wants and needs of the individual proffering the advice. The advice solicited by homebuyers should therefore be related to how to arrive at a particular decision rather than whether the decision is a sound one. Essentially, this is asking for help regarding the decision-making process rather than help regarding the final outcome, which is valuable for several reasons.

Seeking the advice of others for help in the decision-making process ensures that the steps taken to arrive at a decision are sound and not overly influenced by the emotions of any of the involved parties. This also ensures that there is no second-guessing over the decision, as there are many people who can be quite manipulative in convincing someone to arrive at a certain outcome. While this is often an unintentional manipulation, it is simply human nature to want to see others arrive at a decision that reflects the preferences of the advisor even when that decision may not be in the best interests of the advisee.

Process-based analysis removes the possibility that emotion plays too large a role, but it still allows it to enter into the final outcome in a way that is actually beneficial. Since a home is a place that represents comfort and safety but also must be viewed as a long-term investment, the combination of emotional enthusiasm and thoughtful analysis is essential for arriving at a decision that benefits the buyer. After all, there are many people who would happily deal with the adverse issues associated with salty air if it means being able to watch dolphins jump out of the ocean every morning, just as there are many people who would happily live in a less-than-ideal space if there is the opportunity to earn an outstanding return on investment. Through process-based analysis, the homebuyer can take those emotional and analytical tradeoffs into account when selecting the most ideal home.

Advice From Mukesh Valabhji: Alternative Property Purchasing Strategies in High-Value Locations

First-time homebuyers often discover that the process of buying real estate includes a great deal of compromise with regard to their vision of the ideal home. This is especially the case for real estate buyers operating on a budget, and the first aspect of the dream home to be discarded by these buyers is often location-related. In order to purchase a home that meets all of the most pressing and practical needs, the added cost of a picturesque view of a lake, an ocean or a mountain becomes a less realistic desire that is often deferred as something that will have to wait until later in life. While many buyers view this as a simple matter of practicality, there are other options available that allow homebuyers to afford the luxury of an oceanfront home or a home in some other scenic location.

According to Mukesh Valabhji, the problem first-timers and buyers with a relatively limited budget often encounter is the simple fact that the housing that is built at the most visually striking locations tends to be on the upscale side and already holds exceptionally greater value than a similar home built in a less appealing locale. Instead of looking for pre-existing homes, homebuyers should consider expanding their options to include land that has yet to be developed or built upon. While the land will certainly be priced according to its premium nature, Mukesh Valabhji notes that it is often possible to buy the land and build a smaller home that comes in well under budget when compared to the other available options.

Homebuyers who employ this strategy have to make a small initial sacrifice but are able to reap a fairly sizable reward in the long run. With less home-related expenses due to the smaller size of the house, it is quite easy to save money over time to eventually build a bigger home on the same property. With a large, full-size home along with a smaller home on a piece of property in a beautiful location, professionals like Mr. Valabhji believe that there are a variety of ways to generate income that further reduces the cost of living on a picturesque piece of property.

One possibility is to rent out the smaller home on a long-term basis. An excellent location with a beautiful view that also features new construction and an on-site landlord holds a great deal of appeal and should not be difficult to maintain consistent occupancy while charging a fairly significant rate for monthly rent. In certain locations, services in the sharing economy such as airbnb can be utilized to generate a significant supplemental income, though homeowners who prefer a greater degree of privacy may simply choose to utilize the smaller home as a guest home for friends and family who happen to be visiting from out of town.

Any alternative strategy is going to have some drawbacks, but many homebuyers find the idea of securing their dream property before building their dream home to be more appealing and more realistic than the inverse option. As Mr. Valabhji has noted, the location of a home is often the most important factor in determining its potential as a long-term investment, as even the most breathtaking home will not retain the whole of its value if it is located in an undesirable locale. It is for this reason that the small-home strategy is more appealing to those who are able to see the long-term benefits, especially since it removes the possibility that land scarcity will play a role in the ability to secure an ideal piece of real estate in the future.

Of course, it is still more than possible to defer the goal of living in a home that features a beautiful view by opting to invest in real estate poised for consistent growth over the years. With optimal home improvements and a healthy real estate market, eventually the property can be resold in order to purchase that picturesque home residing in the perfect location. Ultimately, it comes down to the kind of sacrifices the homebuyer is willing to make and how they personally value living on a property featuring an appealing view. In determining the ideal course of action, it is important for all prospective homebuyers to consider the full range of the options at their disposal before making a decision to invest in a real estate property.

David Kravitz or Real Estate

Real estate, like any other business, has been changed over the years. With new technologies coming out, there are a few ways to use them rather than checking up on David Kravitz’s Snapchat every 2 hours. I’m going to give you a few real estate tips to up your real estate game.

The first tip is to put money into real estate that is devalued. Why? You might be thinking this is nonsense if you are new to the real estate business, but I assure you, this tip is the trick that will set the newbies apart from the experienced. The reason why you want to invest in land that is undervalued isn’t because you’ll be keeping it. Oh no! Quite the opposite. It’s  because you’ll selling it for a profit. Why? There is only so much land on the Earth and everyone who has a business is out to get it. Right there, you’ll understand that supply and demand affects price in buying and in selling. This is going to take some patience. As soon as you buy land and begin to sell, not everyone is going to jump up at the opportunity to buy your new land. Eventually, you’ll come across someone who will.

You’re going to want to increase the value of your land before you sell, of course. How do you do that? you can do this a number of different ways. One ways is adding trees to the land. Remember that patience thing I was talking about? Give it time and let those babies grow! Over time, naturally and because of trees, your land will begin to grow in value. I mean this value will grow fast. If your land is raw land, having the land developed is another fantastic way to increase the value and it’s also the popular way many people in real estate make the value jump up higher, faster. Oh yes, this is starting to sound expensive, isn’t it? Don’t worry, the ROI is well worth it. As you do this more and more, you’ll develop a skill of spotting raw, undeveloped land just waiting to be made yours.