Investing In Your First Property
Investing In Your First Property
Are you thinking about investing in Real Estate? Yes, buying a home is a big commitment. Therefore before you begin looking at properties, and talking to lenders, take time to look at your current situation. Here are some questions you can ask yourself:
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Are you planning for any significant life changes, for example, a job change? This situation can impact your financial situation.
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Would you be able to commit to staying in your home for five or more years?
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Do you currently have a stable income?
Evaluating Your Financial Situation
Purchasing Real Estate is one of the most significant investments you will make; therefore, ensuring your finances are in order is essential. This process can start by reviewing your bank accounts! When checking your bills, here are some questions you can keep in mind:
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Do you have a stable income?
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Do you have the ability to put money into a savings account each month?
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Do you pay the debt quickly? This plays a significant role in ensuring you get the best mortgage rate.
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Do you have money saved for emergencies that could occur? You always want to ensure you do not put yourself in a tight situation.
Benefits of Buying
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Not having a landlord could mean you can make your house your home the way you want it without anyone else's approval.
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Your mortgagee payments can be tax-deductible, unlike rent payments.
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You tailor your mortgage payments to your budget. As a result, your mortgage payment can be protected from going up as the market changes.
Benefits of Renting
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The landlord is responsible for all the home repairs and upgrades.
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If you rent, you do not buy homeowners insurance or property taxes.
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If you move a lot, renting is most likely more accessible because you don't need to sell your home.
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