When you’re investing any amounts of money into a home – whether it’s the family home or investment property – you want to invest your money wisely, right? Here are 3 common mistakes that investors make quite often. Avoid these and you’ll save yourself money and stress in the long run.
1. Not having an inspection. Home inspectors can find problems with the foundation, attic, heating and air conditioning systems which might not be visible to investors. Avoiding the cost of a home inspection could actually cost you much more money in unseen home repairs.
2. No contingencies in contract. Sellers don’t like potential buyers to back out of a deal but there are certain times when the exception should be made. Some common contingencies that are often written into contracts include: if the buyer fails to get financing, the house appraisal doesn’t match the sale price, or if there are major repairs needed to the property. With these in place in the contract, the buyer is protected from losing money in a money pit.
3. Not understanding insurance coverage. Insurance costs must be paid annually, whether the home is paid off or not, so it’s important to know those costs upfront and adjust your budget accordingly. Also thoroughly understand what is covered (usually fire, lightning, hail, and wind damage) and what is not (usually flooding, earthquake damage, or damage from neglect of maintenance) so you don’t have any great surprises in the future.
hope this help for your next investment project. any questions, send email to investmentproperties@hotmail.com
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