Written by: Icel Dy.
Are you ready to buy your first property?
Whether you desire to buy a house for yourself or want to have it rented as a form of business venture, it is always important to know whether you are ready for your first investment. Here are 6 things to check to find out if you are already prepared for the big change.
6 Things to Consider Before Buying Your First Property Investment
6. Settle Your Obligations.
If you are having trouble paying your bills at this time, then you are not ready yet. It is very exciting to go into property investing, but choosing the right time to jump is important.
5. Have a Steady Job or Income Source.
If you are unhappy with your job, or worse, your boss is unhappy with you, and you feel like your future in your current company or income source is shaky; then it might not be the best time to go into property investing yet. Even if you already have a down payment ready, there are monthly payments that need to be taken care of, and you want to make sure your income stream is steady.
4. Set Aside an Emergency Fund.
This includes 3-6 months of your expenses, such as your monthly amortization set aside for, well, emergency situations.
3. Set Aside a Medical Fund.
Apart from your emergency fund, which usually covers a loss of income, this mainly covers medical emergency expenses. Invest in Health Care Insurance.
2. Prepare for Bank Financing.
Most developers have payment terms that give you low monthly payments and let you finance the balance through bank financing. Run the numbers using online mortgage calculators to find out if you can afford the amortization later on.
1. Prepare for Furnishing Costs.
Rarely are properties sold fully furnished. Make sure you are ready for the additional cost of basic appliances and furniture for a smooth and comfortable move in.
If you have confidently checked all the boxes above, then you are now ready for your first property investment!
Written by: Icel Dy.
ICEL DY is the Vice President of Spectrum Investments, a property portfolio management company. Her background in real estate stemmed from 10 years ago as a property specialist for Ayala Land. She used to live in a house, but has recently been fascinated about small spaces and now live in a tiny home. For questions, you may reach her at email@example.com, or get property updates from www.iceldy.com.