Getting rich quick in Santa Cruz real estate is always a gamble. However, if you’re in it for the long run, then it’s almost a guaranteed good investment. So drop the “instantly wealthy” scheme and plan to get into it for far-in-the-future benefits. Below are expert tips for developing significant property wealth down the road.
• Investigate the community. Just because there’s a nice house for a steal doesn’t mean you should buy it. If it’s in a down-and-out part of town, then it’s not worth the deal. Check out the community and homeowner’s association. You want to make sure the neighborhood’s and the home’s future property value will still be desirable in 30 years.
• Commit to long-term ownership. By keeping Santa Cruz real estate for several decades, you’ll pay down the mortgage, build equity, see some appreciation, and avoid buying and selling closing costs. While you might have to deal with minor renovations over the years, you’ll more than likely come out ahead.
• Crunch the numbers for rentals. A rental property can be a valuable asset as long as it’s in a desirable area, you keep the house in good shape and the rent covers the mortgage plus some extra for incidentals and repairs. Don’t choose a rental property that could be a liability.
• Take advantage of low interest rates. With good credit you can lock in on today’s extremely low interest rates. This might allow you to pay off your mortgage early or live a higher quality life than you would have been able to with higher rates.
• Purchase the proper insurance. Accidents and natural disasters happen every day — and can even happen to you. So whether it’s for flood, fire or tenants, make sure you have adequate coverage to insure your investment.
While getting rich quick might seem like an attainable dream, it usually ends in frustration and bills. So make the commitment to a long-term investment. The more you reduce your risks, the greater your future property wealth will be.
For more information on purchasing Santa Cruz real estate, please call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com.
For additional real estate information, please visit my homepage at www.MySantaCruzRealEstate.com.