Whether you are looking to get your leg up the property ladder or are looking to rent-vest your way to wealth, here are 5 essential tips that you just cannot afford to miss.
1. Location & Locality:
- Location plays the most crucial and pivotal role while you are planning to buy a property for living yourself or as an investment. Distance from key life amenities like, local market, connectivity through public infra, parks & gardens, Commute to work would deeply impact properties value as well as its future capital growth potential.
- Locality on the other hand would tell you about the potential of that region as a whole and as that property is a part of the locality it will follow the growth pattern set by that locality. Is it location in suburban location or is it in regional area distant from CBDs and capital cities? State of public infra available to this locality and any further development potential in time to come?
2. Budgeting your way to Wealth
- Budgeting is one of the most crucial step before going ahead with property buying decision as it gives you a clear roadmap that helps you with choosing the best option from the plethora of options that are out there. Following pointers can be followed to develop an effective budget:
- Price of the Property: It is by far the most essential aspect and directly helps you to go for the property that lies perfectly within your financial bounds & doesn’t hurt your financial health, peace of mind.
- Property Upkeep and Other Costs: Always factor in the costs associated with managing a property it may involve property taxes, renovation costs, property management cost (if a property manager is involved)
- Financial Goals: What have you set forth as your future financial goals and how soon you’d like to achieve them? for example: Early retirement, Passive Income, Capital Growth, property you buy would have a direct impact on your financial health and goals so you’ll have to decide accordingly.
3. Property Type & Size
- Size of Household: This would totally dictate the number of room and the size of property you will need. if you have lived in a multi-generation household then you’ll definitely need a larger house and a smaller dwelling will not suffice. While if you’re just a couple who are employed in one of the CBDs near capital cities then a smaller apartment will be more suitable and manageable for you.
- Flexibility: How flexible the property is if the number of family members increase or is there a provision of extra rooms in case if the need arises. This is particularly important in multi-generation households.
- Financial Goals: Have you bought home for personal use to live in or is building wealth through property your primary goal? These financial goals will dictate your choice of property today.
4. Evaluating Property Status
- Structural Issues: Check signs of any structural defect or damage in the property that can demand major repairing expenses subsequently
- Maintenance Requirements: Some homes may require more maintenance compared to others in terms of repairs, upkeep and servicing concerns.
5. Growth Potential
- What is the future growth potential of the property you are going to buy? What kind of capital appreciation or rental returns you can expect?
- Rental Yields will depend on a number of factors including location of the property, proximity from place of work & connectivity via public transport for affordable and accessible commute options.
- Capital Appreciation: How rapidly the price in current locality have appreciated versus what kind of market trends are dominating the industry and how will it impact the property you are going to buy.
Buying your first home might seem like a daunting task with so much ground to cover in a limited amount of time & resources. That is why, At Ask Financials we make it a point to craft unique mortgage solutions for your specific need keeping your long-term financial health in perspective. To Understand more,
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