For most people owning a property can bring in a sense of freedom and pride that cannot be matched with renting. If you have your own house, you will not be bound by the rules of landlord. Even though buying a real estate property may be the first step that you take towards building your wealth, it is extremely crucial to consider certain things before leaping. Buying a real estate property can be quite a daunting task as it involves searching negotiating, organizing finance, getting legal advice, inspecting and finally emptying your bank account to make the purchase. So, you should think twice before making any sort of decision, especially with buying a property. Nashik is vastly into real estate and it is said to be the best investment option and there are many rooms for rent in nashik .
Things To Consider Before Investing On Real Estate Properties:
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1.How Much You Can Invest?
This is the most important question that you should ask yourself before investing to buy a property. If you have decided to invest in real estate, you may have some saved funds. But, you should think the amount of hard earned cash that you are planning to lock on buying a house. If you have planned to invest on buying a property for rental purposes, then you can access to the invested funds only after a long term. If any emergent need arises, you may put yourself in the situation of selling the house to meet the urgent needs. So, it is highly advisable to invest only the money which you may not need in the near future. If you are anticipating for a big expense, then it is better to wait.
2.Find Out How Much Return You Get:
This is a crucial thing to consider before joining the forum of real estate investor. Return is the cash which you may receive on every dollar that you have invested to buy a real estate property. You should determine how much return you may receive ahead to justify real estate investment.
If you thing that you will be making only less than 100% annual through your real estate investment, it is better to invest on something else. Your real estate investment should be capable of bringing you at least 12% of investment annually.
3.Two Ways Of Real Estate Investment:
Basically, there are two major ways to invest on real estate. You can either consider buying a real estate property to generate income out of renting it or buying a property to hold on it or sell it for more. When it comes to selling the property for more, there are two different ways.
You can purchase a house that need repair and after repairing it, you can sell it for higher price. The nest way is you can purchase a house in good condition and earn some money through rental and sell it for higher prices after a couple of years. While you can make money either ways, it is important to have strategies of how to execute them properly.
4.Financing Your Real Estate Investment:
If you are sure that you have enough cash to purchase a home and do not need any sort of financial assistance, then you can move on to the next phase. However, even if you have sufficient money, it is worth dividing the amount and using them as down payment for investing on multiple properties. It has become easier than ever before to purchase homes with mortgage loan financing offered by a huge number of banks and even private lenders across the country. On the other hand, you can also consider taking loans under various terms and rates.
The mortgage loans come with variable and fixed rates. Even though mortgage loans provided under variable rates have lower interest, the loans come with fixed rates are the best choice for new investors. Typically, the mortgage loans provided for purchasing residence come with better terms and conditions such as lower down payment and lower interest rate requirement when compared to those offered for acquiring properties. So, it is really a good strategy to purchase a house, live there for a year and then subject them for rentals or selling.
Whether you decide purchasing a property for holding it or selling to make more money, you should design out a plan and execute it appropriately so that you can avoid certain problem in the future.