Is buying a property a good investment?
- by admin
- September 16, 2021
- Investment | Real Estate
Buying a property is generally a great investment option. It can generate ongoing passive income if you turn it into a leasable / rentable property. It can also be a good long-term investment if the value increases over time.
However, buying properties is not that easy. You need to make sure that you are ready to start investing in real estate.
For starters, you need to pay a significant amount of money to pay for the down payment, processing fee, and many others. Not to mention the monthly mortgage you need to pay plus the ongoing maintenance costs of the property.
So here’s what you need to know if you plan to buy a property as a passive income source.
1. Pay with cash
Many financial experts don’t recommend borrowing money for the sake of purchasing investments like real estate. So before buying a property, you should consider your finances. It is recommended to pay in cash for the property you are trying to invest in. On the other hand, if you cannot pay in cash, at the very least, you should be able to afford the mortgage payments even without getting a loan or borrowing money.
Think about this: It can be easy to pay for a property if you have renters already. You can use the rent money to pay for the mortgage. But getting someone to rent a property can take some time. This means that you have to pay for the property while it is not yet making money. And this can be a burden if you don’t have a budget allotted for this.
2. Plan out all of your expenses
Aside from the down payment, processing fee, monthly amortization, you also need to consider other costs like taxes, utilities, maintenance, renovation, among others.
So when having your property rented, make sure to add all these costs to the rental fee to make sure everything is covered. Moreover, you also need to have a budget set aside to cover the cost of repairs on your property. This is to help you avoid making unaccounted expenses. That can result in a big loss if not planned carefully.
3. Research the property carefully
Before buying any piece of real estate, may it be land or house and lot, you need to do your research. Is the place accessible? Is it located in a safe and disaster-free area? Is it near shopping malls, offices, business centers, hospitals, schools, among others? Is there any available 24/7 transportation in the area? Is the neighborhood safe?
These are just some of the things you need to have on your checklist when looking for a property to invest in. Location can greatly affect the value of the property. The better the location, the higher and easier you can have it rented.
Check out Mansfield Residences and Timog Residences for the most accessible and safest places in Angeles City!
If you need help in finding the perfect property to invest in, we, at I Am A Homeseller, can help you! We offer free housing consultation and site tripping on the best properties in the Philippines.
We currently have the lowest monthly payments on all premier properties in Pampanga. Get it now! Contact us at 0918-963-6760.
Happy investing everyone!
