As with other investments, it’s up to you to make sure your real estate
investment is a smart one.
That means ensuring the home is independently inspected and is in reasonable condition given the price you’re willing to pay, its age, and the area you live in.
Sizing up the neighborhood
It also means researching your prospective new neighborhood. You can learn a lot by talking to business owners and residents in the neighborhood, the current owner, the realtor, and other occupants if you’re in the market for a condo or
co-op.
For instance, you may want to ask about the quality of local schools, the proximity of parks and other green spaces, traffic flow, and zoning. You probably don’t want to find out a month after you’ve moved into your new dream home that there are plans to build a new expressway running behind your back yard.
Asking the right questions
If you fall in love with a piece of property you may have to remember to ask yourself important questions like, "Is it a good investment?" "Are property values likely to go up in this neighborhood?" "Is it structurally sound?" "Can I really afford it?" It’s critical to consider these issues before you buy, to safeguard your investment.
Insuring your
investment
You’ll want to protect your investment in your home
by insuring it for 80 to 100% of its replacement value — what
it would cost to repair or rebuild the property at today’s
prices. Most companies will increase your coverage and
raise your premium annually to meet rising costs. Liability
insurance can also protect you if you’re sued for
causing property damage or injury to someone.
