One of the most important things to think about when investing in any kind of real estate is location. Knowing where, what and when to sell and buy a property is essential for an ensured high return on investment.

If you are interested in looking for an apartment building for sale, there are a few tricks that can help you during your search. It involves the use of certain criteria to identify the most suitable apartments. Some of the complex methods employed by professionals in the industry are explained below.

For Buyers

Bottom Fishing

There are always opportunities for investing in real estate in Vancouver. Good markets exist in different places and times, however, you should concentrate on weak markets but not on feeble properties. After all, the most comfortable conditions in which to buy are provided by weak markets. This is because prices are depressed, thus increasing the potential for higher profits. When most of the sellers want to get out, the market prices get depressed and buying from such a market is referred to as bottom fishing.

Evaluating Locations

Picking out markets that have the largest gains in building permits through the years could help you discover a construction bubble that would translate to an ideal market. In a diversified economy, excessive buildings should be absorbed. A weak market that may be caused by something else apart from overbuilding should be carefully observed and scrutinized. Multi-family buildings do not generate income for the first owners as they do for the second ones. Builders are paid to construct buildings, and they continue doing it as long as they get rewarded. This makes the market become overwhelmed with excessive structures, and this is when you should start buying.

For Sellers

Demographic Factors that Affect Apartments

When evaluating the demand for apartment buildings for sale, it is important to consider demographic factors. The rate at which people are divorcing is increasing, which fortunately for you as a seller, would result in a larger single population requiring to buy apartments. On the other hand, people are living longer, causing an empty nest syndrome that is caused by grown children leaving their parents’ homes and into apartments. The parents also move out of their large private homes and into apartments as well.

When evaluating favorable property, demographically, you should look for an area where there is a higher percentage of females than males. Preferably, a population of older and younger adults to middle-aged singles rather than those who are already married. You should also look for renters over non-renters and smaller families as opposed to larger ones.

Apartment Building Cycles

“When to” sell or buy an apartment building in Vancouver is also as important as “where to.” If you do not time it appropriately, you might end up with a bad deal. However, you can improve your timing if you become familiar with market cycles. These cycles are as a result of influence from apartment demand and supply on the market.

Source:

Real Estate: Buying a Rental as Your First Investment, HuffingtonPostcom