People always tell us when it’s right to do something. There is always the right time to get married. The right time to eat. The right time to sleep. And of course, the right time to invest in real estate. Talking about the latter, yes it comes down to a few things when buying your real estate property. Things like the real estate market situation in that area, your personal situation and where you are in life. Before you make a decision and buy your own real estate, here are five things / questions you really need to ask yourself:
What is your goal in buying property?
We all have different reasons and goals for buying real estate assets that we do. Some of us want a place to live. Some of us want to go to good places. Some of us want to get closer to work so we can walk to the office. Some of us want to invest in a place that pays us really well in the future. Some of us are close to retiring and just want to settle down All we have to do is think ahead about these goals and decide if we need to buy real estate to achieve them. Also, make sure that the price is right within your budget, otherwise your financial life will become more stressful.
How is your current life situation?
There is actually no answer to this question that is directly related to buying real estate. This is because there are no one-size-fits-all situations that are suitable for everyone when buying real estate. It depends on various factors such as whether you are currently unmarried or in a long distance relationship or married and have a family or where you are working; Whether your employer offers to relocate you to another part of the country. So we all have different situations in life. The important thing is that you make sure that what you buy as part of real estate fits your current situation.
Is your income stable?
The first and foremost thing you need to look at is whether you can afford the real estate you want to invest in. Is your current income stable enough to support a monthly / quarterly or annual payment plan? It’s easy to get excited and decide to buy something in real estate when your business or job is doing really well and you get excited about making such a decision. But the questions you need to ask yourself seriously are: “How stable is my income? What is the probability that my income will remain the same or increase in the next one year? And what about next year? If you find yourself unsure about your future income status, just mortgaging is not the brightest idea right now. You should wait a little longer or until you have a clear picture of your future earnings or when you have accumulated at least enough savings to carry part of the real estate easily.
What is your credit score?
This question will help you determine what interest rate you will get on your mortgage if approved. Just a few points more or less at your interest rate can make a huge difference of thousands of dollars over the duration of your mortgage. Before you even apply for a mortgage, make sure your credit score is what you want it to be. If not here’s a new product just for you!
When it comes to investing, if your goal with your property is to make money just by selling it because you get any good opportunity, this is not always a good idea. Only buy real estate with the intention of making a genuine investment if you are absolutely sure of the deal, which you can honestly never be. This is because it involves a lot of risk, so it should not be your only criterion.
How is the real estate market in that area?
Last but not least, before you get involved in any type of real estate deal, make sure you know all about the market in that area for real estate. Make sure you know how specific properties or similar features in that area have increased or decreased their value over time. You must track the price pattern very carefully and closely before closing any real estate deal. For example, if the price goes down and your financial situation is good enough, then investing in that particular property can be a wonderful opportunity for you. On the other hand, if the price of that or similar property is always high, you may want to be patient so that you can avoid buying a bubble that can burst very quickly.