When investing in a property there are many elements that need to be taken into consideration – elements that even seasoned property investors need to keep in mind.
As a first-time property investor, it might be a bit overwhelming to deal with and process all the new information that is thrown your way. Suddenly everyone has an opinion on what you should do with your money and how you should do it.
Who exactly do you listen to? It might leave you feeling a bit doubtful and questioning whether you are ready to take the plunge or not.
Buying a property is not something that you can just jump into: you need to consider all the factors and do enough research to feel confident in your decision.
Your life plans and budget should be carefully evaluated, not just in the present but for future use as well.
It is important for first-time buyers to be as informed as possible, not through hearsay, but through advice given by people who have been there, done that, and got plenty of different t-shirts in the process.
Here are 4 important tips on investing to consider:
The most common question that pops up in the mind of a first-time buyer is the ‘when‘ part.
When is the right time to purchase? The answer is simple: as soon as you can afford it.
While it is necessary to watch the market and buy at the right time, there is no such thing as buying too early.
Take the necessary time required to make a decision and be sure that you can meet the monthly commitments. Bond repayments should not exceed more than 30% of your total expenses and ideally, you will need to have at least a 10% deposit ready.
Also, keep in mind that you need to be prepared for additional costs like maintenance and transfer duty as well.
Location is an extremely important factor when it comes to buying a house. It has the ability to raise prices through the roof.
A good location will definitely ensure a good resale value and return on your investment.
When looking for the perfect area, consider what amenities it offers. How close will the home be to schools, public transport routes, restaurants, and malls?
Real estate agents will be able to provide you with more insight and statistical analyses on the homes in the area.
There are many reasons why buying a property is a good idea, but the number one reason is that it is a good investment. It is a huge step to securing your financial growth.
Property is far less volatile than shares on the market and you have complete control over your asset.
Usually, property prices increase over time which means that you can make
Save, save, save and did we mention save?
An investor should put as much money aside where possible. The larger the deposit is, the lower the interest rate will be and the easier it will be to afford the property.
Have as much disposable income as possible. You can achieve this by paying off any debts that you might have on your name.
Maintain a clean credit record and check it every year to ensure that there are no errors.
Bottom line: work with a mortgage originator as soon as you have the deposit saved up and partner up with a reputable real estate agent to ensure that the process goes smoothly.