Are you thinking about sinking money into an investment home? Word on the street is 2020 may be a good year for real estate. So… now what?
Thomas Pacilio, Senior Managing Partner of Clapboard Hill Private Wealth and long-time Westport resident offers tips to folks interested in filing a house into their financial portfolio.
Tom’s Tips:
- Don’t reach on price; another investment will come along. I recommend that my clients be patient, even more now based on current market conditions. In most areas of the real estate market a buyer with solid financials is in a strong position.
- Purchase on cash flow, not expected appreciation. Projecting long term growth rates should always be modeled in to any purchase consideration analysis but should not be solely depended on to make the investment a success. There is too much uncertainty in making long-term predictions.
- Develop a network/team of people you trust. Whether it’s the agent, attorney, bank, or lender, surrounding yourself with experts is a must.
- Often people who are purchasing an investment property tie in some of the similar emotional biases they have to their primary residence. Stay prudent! This is an investment and should be treated purely as such.
Clapboard Hill Private Wealth
1265 Post Road East
Westport, CT 06880