The last few years have seen an interesting trend in the real estate industry. Property owners are reinvesting into their own property. Rather than selling or leasing, they are taking the loss and rebuilding. The goal being to increase the value of the property so that it can be sold at a later time or leased at a higher price. Is this a smart move? Only time will tell but it does show an interesting thought process of the investing public. Flipping is no longer a real option as you need to wait years to see a return and even then, it’s not what you would hope for.
The average home, even when purchased at a low price, will need three years in order to see a substantial return on a sale. That’s with holding the mortgage, paying insurance and taxes as well as fixing the property up. Still think flipping is right for you? However, you can take a different approach and look for more, long-term investment opportunities that also pay out in the short term. For example, better construction now means that the structure will be stronger, last longer and because the quality is better, you can charge more for rent or when you go to sell it.
Additionally, because the property has been upgraded it will raise the value of surrounding properties, encouraging other business or homeowners to reinvest into their property. This effect has hit several areas throughout Virginia and is one of the reasons the construction industry has seen a solid increase in business. Rather than looking for quick payouts, owners are understanding the advantages that come with being patient and looking for long-term advantages on their investment.
With so many other options for investing more volatile than ever, it’s nice to know that there is an option out there that can produce reasonable results in the short-term and the long-term. If you get away from the mindset of flipping a property and actually take the time to put real work into it, it will be rewarded in the long-run. This is why it’s important to work with construction companies that understand how to deliver high-quality work at affordable prices. Investing in real estate is nothing new, but now that we are looking at doing it the right way, it’s becoming a big advantage for many property owners throughout the state and will give them an opportunity to maximize the potential of their land as they look for more opportunities.