It’s easy to get carried away and spend our money on the things we want, rather than the things that can benefit us later on. In fact, only 30 percent of Americans have established a long-term financial plan that covers investments and savings goals, showing just how much room for improvement there is! Investments can be the difference between having wealth now, or having wealth in the future. In addition, the two most important, and easiest, investments you can make today are with your house, and with your car.
What Is an Investment?
By definition, an investment is the action of putting money towards something for a profit, or material result. You might be thinking that investments only apply to things such as stocks, or business partnerships. However, you’d be mistaken. People can invest in anything that could grow value over time, or simply serve to make their lives easier. For instance, buying a diamond ring that loses value over time wouldn’t be a good investment. Unless, that ring is a vintage Tiffany ring, in which case the value grows over time.
Home and Cars
Cars and homes are the two investments most people will automatically make. You need a home to live in, and a car to take you around places and to and from work. It’s important to invest smartly and often in both your home and vehicle. Home investment tips are important to follow for various reasons. The first is that a home always grows value over time, so long as you choose a perfect location. The second is that without a home, people tend to pay into rent, which is in essence a black hole that doesn’t help you get your money back. In essence, the sooner you can invest in a home, the better. Cars are a little different, however. Though cars depreciate value over time due to added mileage, this doesn’t mean buying one is a waste of money. On the contrary, investing in a well-kept and maintained car can save you thousands by not having to buy another one! If you’re wondering what are the best ways to invest in both your home and car, you can follow these car and home investment tips for advice.
1. Do Your Research
With any investment, be it your car or home, it’s important to do a thorough amount of research on your investment. This applies to both car and home investment tips! Without properly researching what type of home or car you want, how much you want to spend, and what you’re looking to get out of your home or car, you can be sure your investment will soon be regrettable. Look up crime rates in the neighborhood, what future buyers are interested in, and even if you don’t want to sell your car or home, look at what the benefits of your investments are in the long run.
2. Think about Location
Choosing a good location is one of the most important car and home investment tips you can follow. Location is everything in terms of real estate. If you’re selling your home, you can be sure that the city, neighborhood, the views your home might offer, and everything in between can all help sell your home fast. This also applies to cars. For example, if you live in a cold part of the U.S. and have a car that can’t drive in the snow, this might not be the best investment for your location.
3. Spend Time Inspecting Your Investment
The last thing you want to deal with as a new owner of an investment property or vehicle is a faulty home or car. Having to spend hundreds, if not thousands on emergency plumbing service, finding faults in your foundation, or even faults in an engine are all cause for concern. It’s imperative you hire an inspector to inspect your home before moving in, and if you have a mechanic, have a mechanic inspect the vehicle you are purchasing. Doing so can save you the headache of repairs later on.
4. Opt for Desirable Features
One of the most important car and home investment tips is investing in desirable, highly resell-able features in your home or car. For instance, purchasing a home with hardwood instead of carpet, or using carpet and flooring companies to have your carpet replaced with beautiful hardwood can increase your chances of selling your home. For cars, power-steering, leather seats, and a desirable name such as Rolls Royce or Mercedes are all big investment factors to consider.
5. Get Insurance
Home insurance and car insurance are one of the easiest ways to protect your home and auto, and purchasing them is an essential car and home investment tips. In fact, investing in affordable car insurance can help you in the event your car is in an accident, damaged by weather, or even stolen. For your home, consider getting insurance according to what could go wrong in your area. If you live in an area prone to wildfires, earthquakes, or flooding, make sure to purchase insurance in these areas on top of regular home insurance. Not investing in insurance, and then having to face a catastrophe could cause you years of financial ruin and heartbreak.
6. Get a Good Salesman
When you finally do decide to sell your car or home, you can save money by selling your home or vehicle yourself. However, it’s much easier to utilize a trained professional to sell your home investment. Realtors are highly trained in the area of real estate selling and buying, and can help find you the perfect family to buy your home. In addition, realtors know where to look for buyers, can navigate through the complex closing process, and most importantly help sell your home sooner. A car, however, is always better to sell by yourself, as selling to a dealer can prevent you from making thousands more than you would! Invest in ads, put up fliers, and don’t give up the search for a new car buyer.
7. Do Proper Maintenance
Without doing proper maintenance on your home and vehicle, their value drops down significantly. Some of the most important maintenance you can do on your home is on your HVAC systems, roofing, and plumbing, and gutters just to name a few. Utilize the help of HVAC services, professional roofers, and plumbers, and ensure your home doesn’t grow dilapidated over time. The same goes for your vehicle as well. Ensure your brakes are working, the engine and transmission are in top shape, and you are keeping up with car oil changes, auto glass services for any cracks that could prove costly, and everything in between.
8. Don’t Fall Behind on Renovations
Doing proper maintenance on your home is an essential part of home investment tips. However, so is not falling behind on necessary renovations. If your home is slightly older, it might be time to look into getting more modern appliances, utilizing services for commercial home renovation, and also updating the look of the outside of your home. Experts can help to update your siding, landscaping, and driveway to help you sell your home faster. Keep up on renovations on your home, and stay up to date on trends!
9. Always Drive Safely
It might seem common sense to drive safely and in this way protect your vehicle investment. However, you’d be surprised at the number of people that are nowadays distracted, and end up having a car accident. These can prove fatal, and if not fatal are still damaging to your precious vehicle. On top of causing physical damage, you could find yourself spending thousands on an accident attorney and legal fees to help you settle out of an accident. Save money, your health, and your investment by always practicing good driving skills, and remaining attentive on the road.
10. Dedicate Enough Time
Investing in a home or vehicle can prove to be time-consuming, and it’s best to know this ahead of time. Investing in real estate, for example, takes lots of work in researching, negotiating, doing repairs, finding buyers, and so on. Investing in a vehicle you plan on fixing up and later selling also requires time and money to sell. Don’t start an investment project without first setting apart enough time in your day to focus on your home and car investment projects, and ensure you won’t be stressed taking on new duties as an investor.
11. Do Renovations Yourself
One of the best home investment tips to save money is doing renovations and repairs yourself. This is also a great tip for your vehicle as well. Instead of spending money on someone painting your house for you, why not do it yourself? You can also do half the work ahead of time. For instance, look up used Dodge Ram Parts for sale for your car, purchase them for a cheap price, and then take the parts to a certified mechanic to install in your vehicle. This can save you hundreds on repairs alone. Little DIY projects add up in the long run, and shouldn’t be taken lightly!
12. Consider Renting Out
Having cash flow is one of the best home investment tips, and can help you pay off a mortgage loan quickly. Cash flow, in real estate, is when you rent out a property to tenants, who then pay more in rent than you don on the mortgage. This extra income is known as cash flow, and is a very good thing! Consider renting out to a nice family, people with good credit, and those that have never had evictions and are reliable. Doing a thorough background and credit check on renters is one of the best ways to know your investment property is in good hands.
13. Have Extra Money Saved
A rainy day fund can be the saving grace for any investment project you are working on, be it a home or vehicle. Having money saved up, even for small repairs such as gas stove repairs, can make your investment experience less stressful. This is also important for bigger repairs, such as metal roof repair, that could end up being extremely pricey. Make sure you save up enough money to have cash on hand to prepare for all necessary repairs or issues that could arise. You’ll be glad you did.
14. Know Your Market
Of all the car and home investment tips, perhaps the most important is knowing your market. Without knowing for sure how your market operates, what buyers want, and what they are willing to pay, you can be sure you will either overpay or undersell your investment. Do some market research in your location, and see what other homes are selling for. You can also look at niche markets to sell your vehicle more easily. For instance, there is a big following for vintage and muscle cars, and cars such as the Miata are a cultural icon. Knowing this before you invest can help you make big bucks!
15. Learn to Negotiate
Once you’re ready to sell your home or vehicle investment, now comes the time to learn to negotiate. Always list your home or vehicle for higher than what you expect to earn, and make sure you don’t stray too far from this number. Calculate in your budget what you would like to earn in profit, and negotiate to make this number a reality. This also applies when first purchasing your car or home. Look at faults in the maintenance of your property or vehicle, make the previous owner pay for repairs, and get the lowest price on any investment you make.
Investing in a home or vehicle, either for yourself or to sell later on, can prove to be one of the best decisions you’ll make. Love your investment, treat it with care by doing proper maintenance and research, and ensure you are selling to the best buyer for the best price. Following these simple car and home investment tips are a no-brainer and can make you a great return on investment.