Choosing the Right Real Estate Agent

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Finding the perfect real estate agent to help you find a great property can be a difficult task, but certainly not an impossible one. With some time and effort, you could be well on your way to finding the right estate agent for you, and here are a few of the main things you need to think about.

 

The first thing you need to remember is that a glossy advert in a magazine doesn’t necessarily mean that you’ve found a great agent. A small advert in a local directory might be from a real estate agent which is better suited to you. You should be open-minded during your search and “never judge a book by its cover”, since you could be surprised by where you find the right person for the job.

 

The second thing to consider is how well the potential agents understand your needs and requirements. You shouldn’t hire somebody who thinks they know what you want better than you know yourself, but you should look for somebody who will suggest different alternatives in a patient way and seems to be looking out for the best property for you.

 

Finally, don’t choose the cheapest real estate agent just because you have a small budget. It’s better to increase your budget slightly and get a better agent, since hiring a bad person only means that you’ll be throwing money to the wind, and you’ll probably even hire another agent anyway if the job isn’t getting done right.

Potential Risks of Property Investment

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Yes, it’s true that you can make a lot of money from property investment, but like most things, there are risks and potential pitfalls of doing so. Before you invest any of your money in property, it’s a good idea to have some knowledge about the following risks.

 

  1. Your bank may repossess the property

If you have trouble paying the mortgage on the property that you’ve invested in, the bank could end up repossessing it. If your own home is mortgaged with that same bank, they could even repossess both homes if finances get out of control. If you plan to let the property but don’t find suitable tenants, you may struggle to keep paying the mortgage on two homes.

 

  1. The property may lose value

Even though you could take a very educated guess at when the best times to buy and sell property are, you can never guarantee that you’ll be 100% correct. You may buy the property at a decent price, but are forced to sell it when the house market isn’t at its best for selling.

 

  1. Interest rates may change

If you’re letting the property and interest rates increase, you’ll have to pay more money back each month to the lender, which could greatly reduce the amount that you earn from your property. Again, it’s very difficult to work out when interest rates may go up and down, so it’s a risk you have to take if you want to invest.