Wednesday, July 5, 2017

The Ugly Truth About Property Investment

time for property investments
Any expensive purchase needs careful consideration of the risks, benefits, and effect it will have on your life. Buying a home is one of the biggest decisions you may ever make in your life. Regardless of whether you are buying it as your forever home, or as an investment, there are many aspects to consider still. The excitement of the potential investment can often delude many into forgetting some of the risks involved. 

Considering what you can afford now, not what you predict you can afford in 10 years. By ensuring you can pay the mortgage repayments each month is one of the most important aspects when considering what and where to buy. Many people overestimate their budget, or even worse still predict they will get a pay rise, when in fact, they may not. Rather than predicting you will shortly be able to afford that expensive terrace house in the middle of the city, it may be worth looking at some home and land packages that are available. It is always best to speak to a financial advisor first to see whether you're financials will still be secure in the unlikely event of an emergency. You can not predict what may happen in the future, and rather than blowing the whole budget on one deposit, it is best to see what your alternatives may be. 

Another important element to consider is if you are buying with another person, how will it affect you? Many people often share the cost of their home deposit with a loved one or a close friend, not considering any future predicaments they may encounter with that person. If you have ever experienced a breakdown in a relationship or friendship, you will understand how difficult it can get. In the case of sharing the purchase of a home, it is important both parties communicate clearly, and efficiently. It is important that all that possess ownership make executive decisions together regarding the property. If there is a breakdown in communication, it can be difficult for even the smallest of issues such as minor repairs. Unless you are 100% certain this will not happen, try and avoid buying property with another party.

As soon as you tell someone that you are considering purchasing a new home, you will come across many people who will try to offer you advice along the way. Listen to others advice, don’t necessarily take it. Although they may have experience with something such as investment, finances or even real estate, it is important to remember that you know yourself best. Someone trying to convince you to buy in a city you don't particularly like just because they feel the area will go through a property boom can be annoying. It is best to do your research and stick to your instincts. Although property growth is an important aspect of a house investment, it is always important to be happy where you live. 

It is important to find the best area for you that will still offer the best investment opportunities. Always remember to consider your budget and the risk of sharing the cost of a purchase, as well as researching your options.

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