Things to note when buying real estate if you want to make a quick profit in a few years.

Huge profits from real estate transactions

Among Hollywood stars, Miley Cyrus is called a Disney princess, appearing in the company’s hit movies, associated with many people’s childhood. At the age of 29, Miley Cyrus is also known as an artist with a lot of experience in the field of real estate trading.

Miley Cyrus

The pop star (a genre of contemporary music and very popular in the popular music industry), bought a Malibu villa for 7.9 million dollars (nearly 200 billion) this month. Miley is said to be staying in a six-bedroom, six-bath Mediterranean-style mansion in a Sea View real estate community, after selling the Tennessee farm in August for $14,000. 5 million dollars (about 360 billion).

It is known that this is the most expensive home purchase in 2022 in the Nashville area, only behind Reese Witherspoon’s $18 million (about 450 billion) real estate purchase. Miley bought the ranch house, located just south of Nashville, in 2017 for $5.8 million (145 billion) netting herself a profit of about $215 billion from the recent sale.

Miley reportedly sold this Tennessee ranch home for $14.5 million in August. (Fridrich & Clark/Zillow)

In addition, the female singer bought a luxury house in 2020 in Hidden Hills for $4.9 million (122 billion) and sold it for $7.2 million (nearly 180 billion) just 1 year later. That, according to Dirt.

However, not all real estate deals of “Disney princesses” are profitable. According to Dirt, Miley Cyrus chose to buy a plot of land frequented by equestrian enthusiasts in Hidden Hills, California for $5 million (124 billion) in May 2015 and sold it for the same amount the following month. January 2018.

In early 2016, Miley stayed at a property worth $2.5 million (62 billion) in Malibu, California. The house was damaged by fire in 2018, and Miley reportedly sold the property for $1.7 million (42 billion) in 2020, a loss of about $20 billion.

Photo: Realtor

Things to note when wanting to buy a house or do real estate business

To buy a house and still make a profit after selling it like Miley Cyrus is not easy. Here are some things to note when you want to buy real estate to avoid losses.

1. Property location

This is one of the most important factors to make a profit when buying real estate. Location near amenities such as supermarkets, hospitals, schools; green space; Beautiful views and development of surrounding areas will affect residential real estate pricing.

When doing business in the medium and long term, you need to consider how the area you plan to buy will develop during the investment period. For example, what looks peaceful today behind a residential building could become a noisy manufacturing facility, lowering real estate values. Find thorough information about ownership and purpose in the areas surrounding the real estate you intend to invest in.

2. Calculate repair and maintenance fees

Most people when buying a house will have plans to change, renovate or redecorate the house a little to make it more suitable to their needs. The costs for this renovation will be small or large depending on the needs and intentions of the homeowner. If you just repaint the walls and change a few interior structures, it won’t cost much. But if you want to change the structure and re-install electricity and water lines, you will have to save a large amount of money.

On the other hand, to make the house more profitable, most homeowners will often renovate it to make it more beautiful. During use, there will also be many potential problems. Therefore, during the first time moving into a new house, you may need to repair and maintain many things such as: roof, wall paint, floors, windows, curtains, main door, kitchen… Maintenance costs At first glance, this house maintenance is not worrying, but if added up, it will be a not small number.

Illustration – Pinterest

3. Your debt is manageable

A general rule of thumb is that housing payments (including mortgage, interest, insurance and taxes) should make up 28% or less of your gross monthly income. All your debts combined will account for less than 36% of your take-home pay each month. Remember, “gross monthly income” is the amount of money you make before taxes.

Many lenders will still approve you for a mortgage if your debt ratio is high. And you can decide whether you feel comfortable taking on a little more debt than the 28/36 rule. If you can cover your monthly mortgage costs, still have savings and a steady source of income, buying a home is probably right for you at this time.