Probably the most recommended advice that anyone can give anybody when they ask for investment opinions is to put your money into real estate. It’s actually very sound. Invest your money on a necessity. Property investment can possibly be the most fruitful purchase you will spend in your life.
Although that is the case, much like anything we invest in, there are risks. The process can also be overwhelming. There is no guarantee that investment in real estate will pay-off.
That is why you must strategically plan before pushing through buying a property. Here is a little guide we put together to help you out:
First off, do research. Know the essential details you need. Who do you need to consult? Where is the property located? What area is it surrounded by? All the factors that can determine the success of your investment must be accounted for.
You need to ask yourself this question before you proceed: Are you making this decision because you have thought it through or are you being clouded by your feelings? Investments are about economics, not emotions. Before you make this decision, make sure that you are 100% sure about it.
You are making a purchase that will likely remain for a long time so it is important to focus on the numbers. Begin with the money you have and then with how much you need to purchase the property of your choice. Also, include the operation and renovation costs. Then, estimate how much will you list your property for and cut out the expenses to get a rough estimate of how much you will earn from it. If need be, consider getting a loan option. There are a lot of options out there to choose from.
Settle your debts
In relation to availing a loan option, pay your debts before doing so. We all know that getting a loan while still having unpaid ones is never practical. Clear your financial ledger to avoid any possible problem or conflict.
The 1% Rule
This rule is a real estate investment term that investors use to determine whether a particular purchase is worth making. In accordance with the said rule, an investment should be set to bring in no less than 1% of the price you bought it for every month, including both the purchase price and any additional money you spent on it, such as repairs or renovations.
Of course, in almost every rule, there is a stipulation. For example, if you are buying a property in an up-and-coming neighborhood that is less likely to have good returns, then you might want to focus on the long-term instead. In such cases, remember to keep your monthly mortgage at 1% lower of your investment to avoid paying more than what you are gaining.
Of course, it is only right that you are assured that your property is secure. You need to know that your investment is protected from damages. Say if you are looking to buy a condominium unit, you can consider available ones at Tagaytay Highlands condominiums because they are one of the real estate sellers in their area has 24-hour security with emergency medical services and a regular power and water supply.
Another factor to consider is your approach to managing your investment. Whether you are looking into hiring a property manager or you decide to do it yourself, it is essential that you do it as best as you can. Your investment can only be as good as how you handle it.
Making an investment in real estate could make your financial status turn for the better, so be wise and base your decisions through logical means and tread carefully.