To consider a home a good investment, you need to know what you plan to do with it, as well as where to buy it. In Charlottesville, VA, buying a home can be a good investment. With Charlottesville country homes, there often is open land which may increase in value along with the house itself. Mark Twain is quoted as saying “buy land, they aren’t making more of it”. The fact that there is a finite amount of land, makes these homes a great asset if you need a smart place to put your money.
There are many reasons why you might be buying a home in Charlottesville, VA. You might want a home to live in with your family, or a retirement house. Others might be looking for a place with space to start a farm or raise horses. Charlottesville horse properties are always in demand. Yet, some people want to buy a home only as an investment. They may either be aiming to make a profit in the short-term, or years in the future.
Luckily, there are multiple ways to make money off of a home. Unlike how it might seem, investing in a home isn’t as easy as buying it and selling it years later. While value tends to be secure in a home, it does not necessarily increase. If you know what you are doing, investing in a Charlottesville, VA home will be easy. This article is here to tell you more on investing in Central Virginia country properties.
How to Make a Home a Good Investment in Charlottesville, VA
Real estate is a very complex domain. Ensuring that a home is a good investment requires more than just buying and selling. It requires patience, energy, time, and sometimes more money. Regardless of this, if you put in the effort, it’s possible to reap returns on a property. Here are some of the main ways to invest in a home in Charlottesville, VA.
1.Buying to sell later. The many Charlottesville equestrian estates in the area are perfect for investment. The open land offers the possibility for a variety of agricultural ventures. This could be a farm for horses, a vineyard, or a sustainable family farm, and you can add barns and agricultural buildings. Many of our local horse farms are perfect for an equestrian business. Owners can also choose to leave the property vacant, but the potential is still there. As a result of this, holding on to a property and selling it in a few years in a strong economy is likely to bring profit. With this form of investment, accumulating a profit will take several years. One major advantage is that the seller can live in the home during this period. As long as the house is well-maintained and the land is cared for, then selling value will likely stay intact.
2.Buying a rental property. In 2017, there were 43 million rental households in the United States. At any time, in Charlottesville, there will never be a dearth of potential tenants, particularly due to the University of Virginia and the University of Virginia Hospital. Many people cannot afford a home of their own, so they must rent one. For others, they see renting as a short-term alternative to buying a house. Regardless of the reason, it remains true that renters are almost always available for a well-located house. By buying rental property in Charlottesville, VA, it is possible to get consistent returns. There are two ways to approach purchasing a rental home in Charlottesville, VA:
- Leave the mortgage to the tenants. By buying the house with a mortgage, you are in debt to the lender. Apart from the usual 30% paid upfront, you won’t have to pull anything else out of your wallet. This means that without much monetary commitment, your tenants will pay every month. Of course, most of their rent will go towards paying the mortgage. But, you can always ensure that there is a nice profit on top of the rent for you.
- Pay off the house in full. This option is a bit more limited, as not everyone will be able to do this. When the house is paid off in full, there is more safety for the homeowner. The house is theirs, and there is no risk of foreclosure if tenants default on payment. Yet, it will take years for them to recoup the value of their investment. This option is better suited for individuals who don’t mind the long-term investment.
3.Buying a property to flip. If you ever find a good deal on a Charlottesville, VA home that needs extensive repairs, go for it. These kinds of properties are perfect for flipping, particularly when the majority of the repairs are cosmetic and not structural. When a seller knows that the home is in a state of disrepair or neglect, the value of the house gets discounted.
By purchasing the home and making repairs, it can often be sold at a significant profit. The house does not have to be in a bad state either. A house that is old or outdated can also get flipped. Such a house will likely get sold at a lower price due to its age. By renovating the structure to a more modern standard, you can add to the asking price. Flipping requires effort, time, and money, but can be profitable in the short-term, particularly if you are able to make some of the renovations yourself and do not mind some “sweat equity”.
How to Get the Best Value out of Your Investment Property
The goal of an investment is to reap a profit. The expectation is that you will try your best to maximize the profit that you get. With any luck and a few simple things in mind, you won’t leave money on the table.
- Keep the property well-maintained. When you neglect a home, it begins to show. Few people want to buy a house that looks like it is falling apart. It is important to keep not only the building itself looking good but the land around it as well. Neglected land is not attractive to a potential buyer. Curb appeal matters.
- Upgrade if needed. This applies to any path of investment chosen for your Charlottesville, VA, house. By making sure the house is up to date, you will earn more money from outright selling or rentals. Replace outdated utilities like pipes and electricals. Also, consider upgrades for energy efficiency or towards achieving a smart home. Be careful about what you upgrade, though. Not everything will add significant value.
- Get an expert realtor. Many people want to keep all the profits to themselves, so they work alone. This can be stressful, time-consuming, and may not be worth the money ‘saved’. By getting a realtor, everything moves more smoothly. This applies to sales of property and finding renters. They can also assist you with a location-specific valuation that gets you the best price.
Charlottesville country properties are good choices for investment. To ensure you’re getting the best value you can, it is essential to work with a realtor who knows the area. For Charlottesville, VA, this is someone like Pam Dent, REALTOR.
If you’re on the lookout for investment properties in Charlottesville, you’ve come to the right place. Call Pam Dent, REALTOR, at 434-960-0161 to get started on a home.