Property is an asset and its value keeps appreciating, so if you buy a home now you are certain of deriving more out of it in the next coming years. However before investing in a home for ownership or renting here is what to consider first.
A good financial plan
Firstly, have a good financial plan for a down payment. One actually needs to have at least 20% in order to get financing. Have a solid financial plan, period! You may also go to the extent of having a financial advisor to help you budget accordingly. Consider that. Also remember that a bigger down payment will mean that a lesser equated monthly installment will be required from you.
Playing Dr fix it
Be prepared to handle shortcomings in the home like tap leakages and other possible repairs that may be mandatory in making the house comfortable to live in.so it is essential to set aside good money just to fix and renovate a few things in the house or even in the yard.
Consider your tenants
If you are to invest in a house for renting purposes it is quite wise to also consider your tenants. There is a possibility of tenants vacating the house without serving notice how then do you manage to survive then? Have a solid backup plan. That is to say if you have to service a mortgage loan every month and tenants do not pay what is your solution.
Do not bite more than you can chew
Buying property that is way beyond what you can handle can be your greatest downfall. Let’s look at the cost of repairing or even renovating the house, the monthly pay needed for the mortgage loan and insurance offcourse.it is therefore advisable to start small but if you can afford something bigger then by all means go for it. Now let’s address those who cannot afford investing in a big home just yet.it is perfectly fine to start off with getting a single apartment or a condo.
You might want to consider having partners or partner if you are not yet financially stable enough to get property on your own.be wise in choosing the rightful people or partners to associate with. Legal agreements should be made and a mutual understanding on the management of the property is quite mandatory.
EMI’S and other expenses
For every mortgage loan taken from the bank there is a monthly installment required.be sure to take up a financial offer you can manage to pay without too much strain.in your quest to get a home also put in to consideration the valuation fee. Lenders charge this for their service of finding out if the property you are interested in it is actually available. You will also incur costs on getting the house surveyed. Put that into your budget.
For you to have a beautiful home there are other nitty gritties you need to consider. Things like furniture and other essential extras like bulbs, hosepipe or sprinklers and all.
“And good neighbors make a huge difference in the quality of life, I agree” Robert Fulghum
I have to say no matter how beautiful a home is if you have a nasty neighborhood. your home may not be as blissful as it should be. Consider checking your prospective neighborhood before making a decision.
Is reselling possible
If you have thoughts of reselling the property in the property in the future will it be valuable and easy to get a buyer, not any buyer but a good buyer. Which is why you should be really considerate of things like the street.
Before signing a contract ensure that you have done your insurance assignment. Get quotes from different insurance companies and settle for the most reasonable. Mind you it is highly recommended to ensure your property
Do not simply rush into buying a property simply because you like it. Think about it logically. Do not be influenced by your emotions only. Keep in mind that buying property at a lower price would mean higher chances of earning profit from it.
Be decisive on the type of property that you desire. There are actually 4 categories in property, these include residential, commercial, real estate, industrial and retail. So decide which property you need to purchase. Experts prove that the residential real estate is secure enough to invest in, reason being that in this type of real estate you are certain of a return. People are usually searching for accommodation so you are guaranteed of tenants. When it comes to a higher profit margin commercial, retail and industrial properties out do residential.
Things like your personal credit also add to the amount you are granted to receive as mortgage. How you manage your credit with other retail shops will determine how high or low your loan grant is.so be faithful in paying off your credit it pays off when you need financial assistance from the bank
Usually plots or houses that are very profitable are surrounded by nice infrastructure. This could be working street lights and good drainage systems. Also consider factors like whether the house has an open plan and a balcony perhaps. These factors will work out to your advantage also when you decide to sell off your property in the future.