Some would argue that the property market is one of the hardest investment areas to get into, mainly because it requires a lot of initial investment capital. Breaking into the property market can be a real challenge. If you want to make a name for yourself in it, then one of the first things that you need to do is to conduct research into navigating real estate’s many complexities. This post will simplify that research for you by presenting six facts that you can use to better understand the property market:
If you are intending on investing in real estate, then it’s a good idea to familiarise yourself with what the bright-line test is. There are myriad articles defining the bright-line test online, some going into more detail than others. The most simple and concise explanation that can be given for it is this: The bright-line test helps to decide whether or not a person selling a house has to pay tax on any money that they make from the house’s sale. Originally, this rule only applied to people whose homes were purchased between October 1, 2015, and March 28, 2018. Now, however, properties purchased from March 27 and sold within 10 years are also included, unless the property being s old is your main dwelling. If you are buying and selling houses, then it is unlikely the properties that you are selling are your main homes, and therefore, you will have to pay extra tax.
Another thing that you should be aware of is that at the moment there is a huge scarcity of affordable properties because prices are soaring and largescale development companies are buying up land and houses. If you intend on getting into the property market, then you need to know that now is one of the hardest times to do so. The land is finite, which makes it a fantastic investment. Even purchasing an apartment is a great investment.
Prices are soaring all around the world, not just in New Zealand. If you are interested in getting into the property market then you need to understand that you aren’t going to be able to find a cheap property, unless you buy dilapidated buildings and restore them (which will be addressed in the next section). One effective way of buying property is to buy a building that’s sold for retail purposes in a not-so-popular area, and then convert it into a residential property. The permits required to convert the retail property to residential can be expensive, but it can be a great way to bag property for a discount.
If you have a large amount of money that you are willing to invest, then it is definitely a good idea to purchase property at auction rather than from a real estate agent or even privately. The reason for this is that you are able to get some very good prices on the property when you purchase it at auction. The thing with auction buying is that you have to usually purchase property that needs work. If you are comfortable with this, then you can renovate, improve, and flip properties. Renovating and flipping houses is an extremely lucrative way of making money.
If you are struggling with breaking into the property market, then you could consider asking for a professional’s help. The internet isn’t short on real estate gurus offering their advice. You could take a course or even just stick to online guides. As long as you are getting information from an expert, it doesn’t matter how you take it in. A course probably is the best option though, because it’s the best way to learn a large amount of information in a short amount of time. When enlisting a professional’s help, always research them and verify that they are indeed experts.
Another money-making solution to consider is buying dilapidated properties and destroying them, then re-developing them. An alternative to this is to just buy land and build property yourself. If you are going to do this, then you will need a lot of money. The costs of building property can be very high. In addition to the costs of building a property, you also need to pay for the building permits. Building permits and surveyor fees can be very expensive. You must never attempt to re-develop or make any structural changes to the property without first obtaining permits because this can get you fined.
If you want to navigate the property market, then you’ve got your work cut out for you. However, just because getting into the property market can be difficult, that doesn’t mean that it’s impossible. If you stick to this post’s guidance and exercise some common sense, you too can break into it.