Tips for first-time investor
Should I buy? Can I afford it? Will the investment pay off? These are common questions raised by the first-time investor who aims to secure financial future and increase wealth. However, before taking the leap into the market, try to consider and think about few things beyond choosing what’s the best property price, color or even style. Here are things that you should be critical about.
Clearer Goal to Achieve
Creating wealth through property investment requires you to set goals and develop a plan to reach these goals. Therefore, consider your reasons first whether you want to generate income or increase assets before making decisions.
Your finances should be one of the critical factors to consider before taking the leap into the property market. Know your current financial situation in order to know what price ranges you can afford when you go house hunting.
Property and location
Since real estate investment is about capital growth, it is imperative that you choose the right property at the right location, which increases the chance for better value. For this, you want to conduct research on not just the property but also the market and entire geographical area either in a major city’s commuter belt or close to schools and commercial areas.
When investing in property, there is always the risk of major financial challenges thus lack of cash is one of the common reason why investments often fail. To avoid financial stress, you need available cash flow for repairs, upgrades, insurance, taxes, and to cover mortgage or rent payments.
Off-plan offers [also known as Pre-selling offers]
This means purchasing real estate before it has been built and based on the plans alone which are often cheaper than buying the property once construction is complete. The earlier you buy, the more input you can have on the style and type of property that you’re looking for.
Developer and Agents
Choosing property developer is vital to property investment. This requires vigorous and intense research about who you could potentially work with. You may also consider working with a real estate broker and agents that will give you pieces of advice on your plans.
It is important that you do plenty of research about any markets you’re interested in. This will give you an indication of how successful your investment will be. Make sure that the property you will be investing will satisfy your future clients. For that, they will be willing to pay less daunting.
First-time property investors need to be critical in choosing with a reputable lender. Make sure you choose the ones that can offer different types of mortgages with the best terms and rates. This will ensure you receive trusted financial advice on an investment property loan.
To sum it up, investing in real estate is no easy money. It needs determination, 99% percent research, a concrete game plan and critical mindset before making your money grow. Real Estate agents and brokers can help you or guide you choosing the best property for investment. They help you pick a property that best fits your personality, needs, budget, and lifestyle. Talk to a Filipino Homes Agent today!
Charmaine Xy-Za Yape is a founding member and a blogger of Filipino Homes. She is a PRC and DHSUD Accredited Real Estate Professional and a Licensed Financial and Investment Advisor. She is an International Realtor member of the National Association for Realtors and a Hubspot Certified in Inbound Marketing.