4 Tips to Maintain The Value of Your Real Estate Investment in a New Area
Dec 3, 2020
If you're ready to diversify your real estate portfolio to include investments into new yet unfamiliar territories, then there are a few factors you should take into consideration.
Venturing into a new market can create a lot of exciting opportunities, but to maintain the value of your real estate investment, you should think about all of the different aspects that could affect the property – especially when it comes to a completely new climate.
For example, if you're a successful real estate investor in sunny Florida, then you're probably unprepared to deal with the massive snowstorms that places like New York have to deal with each year.
Purchasing a property in an unfamiliar climate can present challenges for even the most seasoned investor. Therefore, to help make your new venture a profitable decision decision, check out our 4 tips to help maintain the value of your next real estate investment in a new area.
How to Maintain the Value of Your Real Estate Investment in a New Climate
When buying a new investment property in an unfamiliar area, it is important to realize that the climate can bring on a whole new set of potential risks that you may not have expected or are prepared to handle. In order to help you be best prepared, we’ve put together a list of precautions you can take to make sure you know what to expect to maintain the value of your investment throughout any climate changes.
1. Find Out What Weather-Related Repairs Are Common For Local Homeowners
Believe it or not, a quick Google search can reveal a lot about your area of interest, including information about weather-related repairs commonly undertaken by homeowners.
You can learn which issues homeowners experience most frequently and study past weather reports to understand how severe the weather can get in that area. A little research can go a long to way to help you avoid costly repairs in the future.
2. Research Different Methods to Keep Pipes From Freezing
In cold-weather regions, frozen pipes are a common problem in the winter months when the temperatures can drop below freezing. But, you should also be aware that frozen pipes can happen in other parts of the country as well including some warmer regions. All it takes is one unusually cold night for pipes to freeze and create a major plumbing issue.
Regardless of where you choose to invest, you should prepare to deal with frozen pipes. To maintain the value of your real estate investment, you should take preventative measures such as allowing your faucets to drip at night so your water keeps flowing and the pipes don't burst.
If your new property is in an area that gets particularly harsh winter weather, you should also get acquainted with heating tape. This winter weather solution is actually an electrical cable that you wrap around your pipes to keep them heated. You should know the difference between non-regulating tape and regulating tape. Otherwise, you could risk creating a fire hazard. Heat tape fires can occur when the non-regulating tape is left unattended for an extended period and during warmer weather. When not in use, it's best to unplug non-regulated tape or opt for regulating tape instead.
3. Schedule an Annual Inspection of Wood Stoves, Fireplaces and Furnaces
Another preventative measure to take in colder climates is to schedule an annual inspection of your wood stoves and fireplaces. Fixes for these can be costly, so it’s important to take the necessary preventative measures to avoid unexpected issues and expensive repairs.
If not properly maintained, a furnace has the potential to leak carbon monoxide. The tiniest crack can cause the deadly gas to fill up inside of your home.
As you can probably guess, wood stoves are used more often in colder climates than in areas where it's warmer. Therefore, you should plan to hire a chimney sweep each year if you use a wood stove as your main source of heat. When too much creosote accumulates inside of your chimney system, this can have fatal consequences.
4. Look For Sun Damage & Take Preventative Measures
Even if you purchase a property in a warmer climate, there are still factors you should take into consideration before deciding to invest. One of the biggest issues you should be on the lookout for is sun damage.
Keeping up the exterior of your home plays a major role in helping to maintain the value of your real estate investment. Everything from your home's paint job to its landscaping will factor into the overall value of your property.
Over time, UV rays from the sun can cause the paint job on your siding to look worn. As the chemical bonds break down, the paint starts to crack, fade, blister, and peel away causing unattractive curb appeal. The truth is, there is no way to completely prevent this from occurring. However, the right paint job will at least help to lessen the effects of sun damage.
When choosing your paint for your home's exterior, be sure to choose an option that includes UV inhibitors.
Connect With A Local Real Estate Agent To Learn Common Issues To Look Out For
Before you drop your hard-earned money on a new property, be sure you know what the new climate requires. This will allow you to prepare and maintain the value of your real estate investment over time. At all costs, you want to avoid any mistakes that will cause your investment to decrease in value.
If you’re unfamiliar with the area, it can be a good idea to reach out to a local real estate agent who is knowledgeable about the potential issues.
At SimpleShowing, we can connect you with an agent familiar with any of our local markets including Atlanta, Dallas, Tampa, Orlando and South Florida.
Your agent will not only be able to fill you in on potential risks, but they can also help pay your closing costs with our buyer refund. Contact us to get connected with an agent today.