Quick crash course for those new to real estate industry or with little experience on buying and selling transaction. Here are 6 really simple ways to buy low or sell high.
Sell away your property in a prime area at a high price and buy another property in a less pricey area at a low price.
Due to economic fundamental, natural inflation and debt funding, prices of all items will generally go up in the long run. If you can wait long enough, you will be able to sell at a higher price than the price you bought.
- Distressed Sale
Since the peak of property market, over leveraged investors are now stretching their cash flow too much and many are now resorted to selling hastily at a low price before the bank does a foreclosure on the property. If you do come across any relatives or friends selling their property at a low price, this is possibly your only chance to buy low.
- Add Value
Furnished or renovated properties generally gets a better price than those without. But do not over-renovate as some high end designs may not appeal to everyone and it could end up as the reason to bring down your property value rather than adding to it.
- High Supply
Simple economic principle states that when there are excess supply with the same level of demand, the price drops. When the market slows down, the supply will start to rise, and this is your chance to buy low.
- High Demand
On the other hand, when supply stays the same and demand increases, the price increases. This situation happened from 2010 to 2013 where the property prices are racing up day by day which was the best chance to sell high.
Generally, the above mentioned methods are really simple methods to start off for newbies to the real estate market. Do continue to find better way to buy low and sell high ! If you have another simple method to share, please let me know! 🙂