Property is the most stable asset to acquire in any part of the world. However the memory of the global financial downtime’s effect on real estate is still fresh. As much as that was a harrowing time for home-owners, there were a lot of investors who actually went in for the kill.
Very few first-time owners would have the insight that it was an opportunity to purchase property for dirt cheap. Property appreciates considerably in most cases giving back good returns to a prospector. Again in most cases, it can be put to profitable use such as;
- Residential use that saves or earns rent
- Business or factory premises that saves on rent
- Storage and warehousing that saves on storage expenses
- Parking lot that earns a profit
- Farm use for subsistence and sales
- Man-made forest for carbon points and wood
- Man-made lakes for recreation
When investing in property for the first time, one is conflicted with many choices and pitfalls. It is a high stakes decision that requires wide consultation before being arrived at. The best decision relies upon the available finances, the current income and the expected returns.
Purchasing property when the opportunity presents itself, is riskier than having planned before-hand. It is advisable to fix a budget after analyzing one’s financial status before contacting a realtor. Then with requirements and preferences for the property concluded, the search can begin.
Depending on the city, county and state, leased or free-hold properties may be available. A good estate agent or mortgage broker will give solid investment property advice, not just selling his portfolio. Such real-estate agents gain a good reputation and are widely referred to by their clients. It’s important to seek effective and professional advise when buying your first home.
It is usually a good idea to get partial financing even with the full amount at hand. That eases the payment load to the first time buyer by differed payments. The buyer sacrifices interest charged by loaning institution with credit worthiness. That may come in handy for future investments. It is however advisable to only use this strategy when there is a stable monthly income.
The safest route for first-timers are with mortgages designed for the buyer’s income bracket. A long payment period of decades should not put them off if the appreciation of the property is expected to rise. If part of the residential property can immediately be converted for rent, then the mortgage burden will be eased.
Different decisions are made with property based on the owners’ professional background and family history. This means that a property, whether brick-and-mortar or undeveloped, may or may not be sold in future. The type of use by tenants may also be dictated upon by the new owner based on his or her preferences.
However, from an entrepreneurial perspective, the size and location of the land should dictate its use. Property value appreciation is best secured by carefully choosing the location and size of property.
In summary, choosing a first home is a delicate, complex and risky process. To mitigate risk, be clear on your financial goals, consider property size, location.