License: Image author owned
Buying a property is regarded as an excellent investment. But, it takes the right route to achieve a good result. There are only two outcomes in real estate investments – success or failure. One thing’s for sure, though – we all want to have our dream home. The problem is, investing in a property may not be as smooth-sailing as you want it to be, especially when you are not prepared for it. Having an effective plan before you decide to invest is very important.
A successful real estate investor would never invest in a property impulsively. He must have a sound judgment before they jump into making decisions. First things first, he also has to consider these things if to increase the chance of succeeding at it.
1. Income stability
One of the important factors you need to consider is your income. How stable is your income? Will it be enough to support the required payments throughout the tenure of the mortgage? These questions should not be taken lightly since it can make or break a good investment. It has to be addressed seriously. Assess your financial capability whether your present income can help you achieve what you want or not.
Generally, a successful home investor would never misjudge what they can afford. He makes sure the investments he makes will not end up in liabilities. Although there are properties in Bonifacio Global City or any other real estate in the Philippines that pique his interest, he ensures that his income can support such investment to avoid any financial problems later on.
2. Good credit score
As we all know, home loans are popular these days. But, you may not be eligible for a mortgage loan if you don’t have a good credit score. That means whatever debts you had previously, you have to make sure that it won’t damage your reputation as a borrower. Understandably, there may be times you missed to pay your loans on time. As what every diligent borrower does, make sure that you’re still going to pay them as soon as the spare money is available.
Since a good credit score is a measure of the borrower’s trustworthiness, it will attract lenders. If they know you are a good payer, then they won’t hesitate to lend you a good amount of money for your home investment.
3. Current situation
Just because you want to invest in a property, you’ll invest in the first property that you like without looking at your current situation particularly your finances. Apparently, there are important factors you need to address first. Before you start searching, consider these questions: Are you single at the moment? Do you have a family? Do you want to live solo or with a roommate? Would you want to live near your office? Or, you want to move to a community where the cost of living is low?
Your answers will give you an idea of what kind of property best suits your current situation and lifestyle. Moreover, this is also one way to narrow down your requirements on what particular features would you want the property to have. This also makes the search even faster and easier.
4. Property goals
Not all homebuyers have the intention to live or stay on the property they just bought. Some would prefer having it as another mean to generate extra income. Perhaps through selling it after the necessary improvements or renting it out. Hence, knowing what you want to do with the property after the purchase also matters.
When it comes to choosing a property for income-generating purposes, always remember that it is not about you. There are things you like that your potential buyer may not like or need. That is why you have to consider the people who will most likely to invest in your property. This is your target market.
Investing in a property is indeed a challenge. You need to think, balance and assess every aspect of the investment process. But, if you have a clear view on what you want to achieve in life, the process will be much easier. The things mentioned above are what separate successful real estate investors from the amateurish investors. Which side are you?
March 9, 2017
US Property
Indian Property
UK Property
