Is A Property A Bargain Or Not.
To buy or not to buy? Is a property a bargain or not? These are questions investors and potential owners of property have to ask themselves time and again.
A bargain is a property that is selling at a price below market value. A comparative market analysis (CMA) determines the market value.
This analysis is ascertained by comparing a property to others that are listed and have been sold in that area.
Although the property market is very competitive, not many properties are sold lower than the market value.
Personal reasons like sequestration, debt or emigration can make a seller compromise on price.
Certain factors are the cause of properties selling at less than the market value such as:
- An economic slump.
- Undesirable area.
- Neighborhoods with a lot of crime.
- Properties that are in poor condition.
There are definitely bargains up for grabs if a buyer is willing to accept these factors.
A more personal definition of a bargain is a property that you like, and you can afford.
An investment is when you can generate a positive cash flow out of the property, regardless of area or condition.
Anything that costs you money is not an investment regardless of how cheap it was.
A bargain is anything that puts money into your pocket every month.
The only way to make sure if a property is really an investment is to apply the Property Pro System to calculate the real growth of the investment.
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