|
Real Estate Investment Project #1 (pg. 2)
|
View this Thread in Original format
| Legend |
| Wow nice work. Glad to see it will pay off for you. |
|
|
| Trancer-X |
| quote: | Originally posted by kid nyce you should look into one more large feature, possibly a pool or sauna =)
|
Unless it's a million-plus dollar property, a pool almost always detracts from a home's value (and also reduces it's marketability.) In other words, it's not a wise investment - especially considering all of the time and labor involved in putting one in.
BTW - good job, Greedy! |
|
|
| kid nyce |
| quote: | Originally posted by Trancer-X
Unless it's a million-plus dollar property, a pool almost always detracts from a home's value (and also reduces it's marketability.) In other words, it's not a wise investment - especially considering all of the time and labor involved in putting one in.
BTW - good job, Greedy! |
i don't know about you but if i were to buy a crib with a brand new pool i'd be pretty happy about that. i mean we are talking a brand new one, not a renovated used pool.
so if i put a pool on the roof top of my UWS brownstone, I'd be pushing potential customers away? |
|
|
| Greedy |
| quote: | Originally posted by kid nyce
i don't know about you but if i were to buy a crib with a brand new pool i'd be pretty happy about that. i mean we are talking a brand new one, not a renovated used pool.
so if i put a pool on the roof top of my UWS brownstone, I'd be pushing potential customers away? |
Well Trancer-X had a good point being he was speaking generally for a suburban residence. Having a rooftop pool in the city is indeed a luxery item and your potential buyer would most likely have the money to afford it. Adding anything like that to a rooftop adds more space the owner can utilize. For a house in the burbs its a different story simply because owning a pool requires maintenance and cutting the grass is already bad enough chore for some.
For renovating purposes, a lot of investors will tell you to stay away from spending money on things like that simply because its not worth it. Say your property was worth $800 and adding a pool would cost $10,000.
Does that mean your property is now worth $810,000 or more? If youre lucky, maybe. That is a risk you take if you want to sell the property fast. |
|
|
| kid nyce |
| i guess your right, i can understand the corrolation. Other than the addiction, i think the renovation is really superb. |
|
|
| Greedy |
well as a buyer, i would love to buy a house with a pool. I mean who doesnt? Another point i forgot to mention is that as an investor, your job is ultimately to do what you gotta do to the property then get rid of it asap so you dont have to pay as much interest on your loans and mortgage. However its totally different when you're living in the house because you arent losing money so the urgency to sell isnt as big.
If you got the money and you can hold on to the property and you know you can sell for a higher price, go for it. Its a gamble not many ppl have the luxury of doing! |
|
|
| kid nyce |
| quote: | Originally posted by Greedy
well as a buyer, i would love to buy a house with a pool. I mean who doesnt? Another point i forgot to mention is that as an investor, your job is ultimately to do what you gotta do to the property then get rid of it asap so you dont have to pay as much interest on your loans and mortgage. However its totally different when you're living in the house because you arent losing money so the urgency to sell isnt as big.
If you got the money and you can hold on to the property and you know you can sell for a higher price, go for it. Its a gamble not many ppl have the luxury of doing! |
ok i'll wait for you to build a party house in the carribean so i can have a free place to stay hahaha with a pool of course |
|
|
| Greedy |
that
we will buy our own island :) |
|
|
| kid nyce |
| quote: | Originally posted by Greedy
that
we will buy our own island :) |
that works too! we'll need someone to buy the jet so we can fly everyone down to our island |
|
|
| Legend |
| This is quite the educational thread..... so what IS worth adding to a house before you sell? I thought a pool would add significat value but you guys bring up good points. |
|
|
| Trancer-X |
| quote: | Originally posted by Legend
This is quite the educational thread..... so what IS worth adding to a house before you sell? I thought a pool would add significat value but you guys bring up good points. |
Finish unfinished basements, add bedrooms and/or bathrooms, do yard improvements, add a deck, etc.
There are many things that improve the value of a home. |
|
|
| Greedy |
well this is what I think.
It really depends on what kind of seller you are, how much you are trying to make, and how fast you need to sell your property.
Say for instance you are a regular home owner and you want to finish your basement or install a pool. After everything is done, you decide to put your house on the market. If no one buys from you 5 months down the road, everything is fine. You still have a roof over your head, you still pay your mortgage and if you played your cards right, you might even make decent equity. No risk basically.
On the other hand, my father and I are investors so this means that we make money from buying and selling (aka flipping) property and contracts. We dont care if we make $500k or $5k on any deal. Profit is profit as long as it doesn't doesnt take up more time and money than its suppose to. We deal with a lot of really really big loans with really really big interest rates to buy houses so it is very important that we sell fast. When you are paying mortgages for multiple houses because no one is renting nor buying from you, that puts a really big dent in your wallet. Profit is profit so if someone wants to buy, you better sell and move on to other deals. You cant be greedy here because you'll be ed.
So going back to things that would add significant value. . . . there are so many things to take in account so this is what i believe, simplified. If youre an investor, you want to spend the bulk of your money on the important stuff. Put up new roofing, siding, fix the foundation, put in new flooring, new appliances, water pump, AC, and do whatever you can to increase living space. These are all the things that are vital to everyday life living in that house so a potential buyer will pay close attention to those. As an investor, I WOULDNT put in a pool simply because its not vital to the house. It costs money, and it takes more time. If a buyer wants to put a pool in, they can do it themselves. You dont want a potential buyer to back out just because he doesnt want to maintain a pool. Taking out a pool is not very easy. You also gotta look at what kind of potential buyers youre dealing with. If youre dealing with a property in a high class neighborhood where ppl have lots of money. . . then go ahead and add those nice fancy things. But remember. . .a lot of those mansions are usually custom built specifically to the buyer's request.
The object to doing all of this is to make money. The key thing that some people forget and need to constantly be reminded is that . . . . . .YOURE NOT LIVING IN THIS HOUSE so dont waste your time nitpicking as long as you do a good job and do it efficiently. The clock is ticking and the longer you own a house, the more money youll have to pay your lender. |
|
|
|
|
