Investing in property is one of the best financial decisions you could ever make. Here’s what you need to know:
Investing in property is one of the most secure and rewarding investment decisions one can make in the short, medium or long term. The value of property and expected returns on investment provide much needed financial security. For those who have already experienced the property and investment process, making this decision is an easy one and working through the process is equally as simple. For first time property investors, this can prove to be daunting with some irreversible mistakes being made along the way. What should beginners pay attention to as they embark on this journey?
Here are some top investment tips for beginnersBonds
Home bonds are often the first financing consideration for many to acquire property. What is important to note however is that different lenders have different lending criteria and conditions. It is therefore advisable to shop around to find the best possible financing deal. It is also not a bad idea to enlist the services of a bond originator. Bond originators will do the search for the best deal and their services are often free on the part of the home loan applicant.
Have sufficient funds
A bond will normally cover the price of the property. However you need to be mindful of the fact that sometimes lenders do not always offer a 100% bond on the property, which means there will be need for a down payment. The property transfer process also demands the expertise of attorneys. All these come at a price. You may also wish to consider insurance and arising general repair expenses. It is therefore important that you have sufficient funds for such needs.
You need to carefully choose the type of property you will buy. Is it a house, townhouse, apartment, farm? Is the property you are buying for a big family or single person? Do you plan to rent out or occupy? All these are key considerations. As you buy, you need to go for property types which are doing well in the market.
Location with high rental demand
Location can make or break your property investment ambitions. Where the property is located largely determines the value the property returns in the long term. If you buy a property in a crime ridden area, you can expect the value of your property to go down fast. If you buy a property in an area with no social amenities, the value of your property will be limited. You need to choose a location with high rental demand and good prospects for selling if you are to consider selling at a later stage.
Get building inspection done with a report
A building inspection will reveal hidden details about the property which require your attention. These are things you can choose to avoid or get ready to resolve by yourself or by the seller of the property. There are property inspection professionals who can assist you in this regard.
Don’t fall for luxury
As a first-time home buyer, luxury should not be on the list of key considerations. A few luxury décor additions may cost you more unnecessarily. Look for a property which is in good condition with modern features.
Property investments require that you are realistic especially when it comes to returns on investment. Don’t expect to return all your investment in a short period of time. You need to exercise patience but also make well researched decisions to avoid making catastrophic investment decisions.
The tips provided above will assist you to enjoy your property investment as a beginner.