Whether you’re in the market to find a residential real estate for occupancy or leasing, choosing the right location, property type, and home features can help make your purchase a profitable investment.
A desirable real estate market is an area with high appreciation potential. Communities with stable or steadily rising home prices are safe bets for your money. Brisk local business and continuous development in and around the community means there are jobs to go around, encouraging residents to stay within the area and enticing new residents to settle down. These factors help drive demand and home prices up.
Besides looking at home price indices and unemployment data, home buyers are typically on the lookout for properties located in master planned communities that offer clubhouses, pools, nature areas, playgrounds, parks, hiking trails, and other amenities. Malls, retails shops, and high quality schools are definite add-ons, and so are historical sites, tourism spots, and fine beaches.
Some residential property types do well in certain places or areas, but may not be as popular in others. An investor should be shrewd enough to understand market needs and build a real estate investment portfolio based on market trends and requirements.
Below are the types of residential properties:
• Single-family Residences:
The most common property type, single-family residences are stand-alone structures that support only one dwelling or family. These are commonly the cheapest properties to purchase.
A type of single-family dwelling, townhouses, are typically two-storey houses that share side walls with an identical house and are usually terraced.
• Vacation Homes:
Otherwise known as second homes, holiday cottages, or holiday homes, vacation home are commonly located near beaches, ski resorts, or leisure areas and function as seasonal accommodation for the owner or rented out to other vacationers through an agency.
• Multi-unit properties:
Multi-unit properties are residential properties with two or more housing units contained in one building. They may also refer to a residential complex with several buildings.
• Modular Homes:
Modular homes are built off-site, usually in a controlled factory environment where they are prepared in sections. They are engineered and assembled based on state requirements and building regulations of the prospective location. After completion, they are delivered to the site and installed on permanent foundations by a professional installer.
• Manufactured Homes:
Otherwise known as tiny homes, trailer homes, or mobile homes, manufactured homes are pre-fabricated structures constructed on a permanently attached steel chassis which allow them to be moved.
A condominium refers to the individual ownership of a specified part of a building and the right to use common areas and amenities which may include the lobby, pool, spa, or sports center. The rights are managed by the association of owners.
A condotel is a building which is legally classified as a condominium but operates as a hotel. It can serve as a permanent or long-term residence, or may offer short-term occupancy. Condotels usually maintain a front desk or concierge.
• Investment Properties:
An investment property is a property which is not occupied by an owner. It is owned for the purpose of realizing profit either through rental or appreciation. Investment properties include single-family residences and multi-unit residential properties.
Financing options and interest rates vary with each type of residential estate. Single-family residences are the easiest to finance and carry lower interest rates while financing for condos usually have higher interest rate. Both modular homes and manufactured homes may be financed through personal loans.
Besides paying attention to location, home buyers typically look for features which make a property special, energy-efficient, and practical – things that add overall value to the investment.
Here are some of the home features that not only make life more comfortable but increase the property’s resale value as well:
1. Outdoor living spaces:
Home buyers hanker for outdoor living spaces, which includes having an outdoor fireplace.
2. Double car garage with storage area:
A double or triple-car garage gives ample storage space besides accommodating parking needs of couples or families.
3. Closets and storage spaces:
Lots of closets and storage spaces are great for keeping things organized. If your potential home has inadequate storage space, it should at least have some functional area that can be converted for storage purposes.
4. Natural Lighting:
Natural lighting that flows into the house is relaxing and stimulating, not to mention energy-saving.
5. Unobstructed view:
An unobstructed view of parks, bridge, skyline, river, and mountains can be uplifting and definitely does a lot to increase property value.
6. High ceiling:
High ceilings reaching to about 14 feet is a luxury that many home buyers wish they have if they can afford it.
7. Heavily insulated Windows:
Double-paned, heavily insulated windows protect against outside noise and bad weather conditions. They are also necessary for preventing heat and cooling loss.
8. Architectural design:
A house with sturdy, practical, and unique architectural design is more likely to last for decades and fetch high resale value. Intricate details, solid foundation, and high quality materials combined with great artistic design are qualities that will never go out of style.
9. Practical Layout:
Practical house layout allows residents to move with ease from indoor living areas to outdoor spaces and back.
10. Smooth interior layout:
The floor plan or the interior layout should allow for easy and natural flow from one indoor space to the next.
Whatever your investing needs are, do keep in mind that we have the widest range of Long Island properties and services to help you realize your dreams.
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