Think you are ready to invest in property? Here are a few things that you must consider before you make your decision.
The very first thing that you must consider is the kind of property that you are interested in buying. There are commonly two types of property, which are residential, and commercial. If you are looking to place a safe bet than you must invest in residential property. Why? This is because the rate of return will be more stable and predictable and there are fewer chances of you losing money on it. As shelter is a basic human need, the search for quality homes will always remain, meaning your investment will always be in demand.
Your credit score plays a major role when you are trying to get a mortgage. This is also essential because it will affect the rate of interest that you will have to pay on the mortgage. A few points whether up or down can make a substantial difference to your return on investment. Only apply for a mortgage if you have strong credit.
Investing in real estate is not a small item. It requires large amounts of money which are usually brought together through saving and mortgage. This is why it is imperative that you have a steady income and financial standing so that can weather any difficulties that may come up. If you are currently operating through surplus cash, that should also be considered when planning the finances.
No matter what kind of property you are planning to invest in, location will always play a major role. More than the property, you are investing in the location and if that isn’t good, your investment won’t be worthwhile. So to ensure that your money will stay safe, do some research and try to know more about the location where your desired property is. Try to find out more about how safe the area is, what amenities are close by, etc.
There are many characteristics of a property such as its condition, the amenities it offers, the infrastructure surrounding the property, etc. All these things are important and ties in with the location to ensure that you are selecting a property that is in demand and will continue to be during your ownership.
If you have any questions about investing in real estate and would like to consider your options, please give me a call any time at 604-445-0851.