Are you planning to invest your money into real estate properties? Do you have plans purchasing a real property? If so, consider the tips and suggestions mentioned below.
News abound anywhere and everywhere that real estate investment is one of the most profitable business in the market. Despite the onset of recession and economic crisis, real estate investment is still the most feasible form of investment other than stocks and savings account because its price is not easily affected by inflation and economic crisis. If the price of real properties declined in one state, it does not affect other the prices of real properties in other states.
With the growing real estate industry, developers built myriad properties to give you choices. However, with the numerous real estates around, for sure you are confused on what property to buy. Bear in mind that your purchase should not be influenced by any advertisement and promotions by owners, but you should you should find one that best suits your needs and requirements.
Before you invest your money, you should conduct research and choose the right property yourself. If you can afford, you can hire a financial adviser and ask advice on what steps to undertake. Whether you purchase a property for your own use or for commercial purposes, there are several factors you need to consider before you make a purchase.
Factors that you should consider before you make a purchase:
- Affordability – Before you source out and hunt for houses or commercial properties, you should first assess your finances. You should consider how much you can afford. To manage your finances effectively, you should make it a priority to plan your finances first. Make it a point to list down your income and your expenses. You should be realistic on your budget estimation. When I say realistic, it means you should not forget your basic necessities. The result of this move will show you how much money you can afford to spend for your purchase or to pay for your loan every month. You should also consider the amount you deposit in your savings account. Never forget to have savings because you will need it to pay for emergencies and extraordinary expenses, like hospitalization, accidents and property maintenance.
- Location – Before you buy a property, consider the location and the purpose of having them. If you want to convert the property into a commercial space, then look for those found in areas with high foot traffic. Avoid selecting areas which are prone to floods. Check the drainage system of the property.
- Logistics — Another factor you should consider is logistics. Choose a property which is near to your office and your children’s school. It should at least take you one hour or two hours to commute from these areas.
- Amenities/Types of property – Assess what type of property you intend to purchase. If you want to buy an apartment or a condominium, be sure to consider safety issues. Does it have security personnel to guard your properties while you are not around? Does it have a fire exit area? Check if it has an existing electricity, water and Internet connection.
By considering the factors mentioned above, you can choose a feasible property that meets your needs and requirements.