By: Paul Simpson
17 May, 2018
Of course, one of the reasons why you may feel confident in purchasing a property is your financial situation at the moment, either you have been recently promoted from work and an increase in salary is evident or if you are an entrepreneur, your business is picking up more sales, giving you a steady flow of income. Ask yourself sincerely, “Can you really manage to pay the potential property with your present earnings?” You must have an open mind with regards to any unexpected events that may happen in the next few months beyond your control like decrease in sales or poor performance of the company where you are working before you make a final decision.
If you are planning to apply for a mortgage, the determining factor that will give you an edge in acquiring a property is your current credit score rating. Why? It’s just a very straightforward principle, if you have a good credit rating, you are a likeable candidate for any loan and that includes a home loan. In case, it turns out that your present credit score isn’t eligible yet, better find ways on how to increase your credit rating.
Another factor that will prompt you to invest in a real estate is your present status in life. For example, if you are still single, but have plans of getting married in the future, investing in real estate could be a good idea, especially if you already have enough savings to fund a property purchase. On the other hand, if you are still enjoying the life of singlehood like going to places to travel, investing in any real estate now or in the near future may not pose a favorable result on your part because your present lifestyle may not be able to cope with the required payments of an investment in real estate.
If there is a sudden drop of real estate prices in your area, this maybe a good sign that it’s time to invest in a property, especially if you are in a position to acquire one, but if there is a drastic increase of real estate prices and your present income cannot afford to make that final purchase, then, delay your intention and save more, rather than enter into a transaction where you will end up in huge debt.
Although, it might be very tempting to invest in any real estate now due to a decrease of home loan interest rates or sudden drop of real estate prices, be true to yourself if you are really prepared to make this property investment or not.
If you are the type of person who can’t stay long enough in one place, would love to travel and splurge on expensive things, then, delay the idea of making an investment in a real estate to save you all the headache of having to face foreclosure in the future. But, if you are really serious of having your own property as early as now and have the capacity to pay the required payments, either in full or through an easy payment plan, then, know the ins and outs of buying real estate and consult a property expert for a more successful and enjoyable property buying experience.