How to select a good investment house

BY JENNIFER BEAR
Reporter Correspondent
The Reporter, Florida Keys Keynoter
July, 2003

Fattening your bank account by investing in real estate is a no-brainer in the Florida Keys if it has a roof and four walls, its bound to appreciate.

Bill Wilkinson, a salesman at Re-Max Keys to the Key Real Estate in Marathon, said the property market in the Keys is in such a state that any halfway decent home in a good area will be a good investment.

You cant go too wrong here, he said.

Wilkinson said property appreciates so rapidly in the Keys because of the law of supply and demand.

The increasing number of people who want to live here and the limited ability to build new homes causes property values to rise and rise and rise.

However, no matter how hot the market is, Wilkinson said homebuyers should purchase homes that are in good condition.

And if youre going to buy a house thats less than perfect, make sure you have the money to fix it.

He added that one of the most expensive things to correct in a home is cracking concrete.

Deidre Praught, a Realtor with Florida Keys Realty in the Lower Keys, also said homebuyers need to be realistic about their interest and skills in regards to fixer-uppers.

She added that when buyers are looking at investing money in a property, they should first rent a home in the area and get to know its amenities and resources.

Praught said there are a number of pitfalls for homeowners to avoid in order to get a good return on the money they invested in their property.

First, dont try to time the market. Waiting on buying a house may mean missing out on a great investment opportunity.

Second, dont count on the rental income to help pay the mortgage expenses.

And third, buyers can increase appreciation quickly by purchasing a house with poor landscaping and then transforming the property with lush, new surroundings.

Brooks Clark, of Brooks Clark & Co. in Islamorada, said that rather than buying fixer-uppers, people should buy the highest-caliber house they can because then theyll get the best appreciation.

A buyer has to be enthusiastic and go in there with all the gusto in the world, she said.

Clark added that there are a number of characteristics to be on the lookout for when trying to pick a house that will give you a good return on your investment.

Anything with a view of anything on the waterfront will obviously appreciate like crazy, Clark said.

Also, homes with good architectural lines are sure to be a worthy investment. Home with big windows, a symmetrical look and tall ceilings (9 feet or more) appreciate well.

Brooks added real estate needs time to appreciate so you shouldnt sell your home immediately after buying it.

She suggested homeowners hold on to their property for a year or longer in order to get a bigger return on their investment.