First Time Real Estate Investors—How do I know if I’m making a good investment?—Investing in Suisun
First, what are your financial reasons for wanting to invest in real estate? College education for your kids? Money to travel the world? Extra retirement funds? All of the above? Good!! For every Suisun investment property you purchase, you should have a financial goal tied to it. This way, you will be able to analyze properties knowing what your financial needs are. It’s like those Fidelity commercial with the green line, you’ve got to know where you want to go, to get there. This will serve as your anchor when the market seemed to being just the opposite of what you hope. This anchor will keep you on a steady path through the ups and downs.
Next, you’ve got to realize some of the financial difference between an “owner-occupant”—someone who will live in the Suisun home they buy and an “investor”—someone who will not live in the Suisun home they buy. When it come to financing, banks know that most novice investors don’t do their due diligence in evaluating a property and that means a higher risk to the bank to lend the money. Therefore, the banks charge a slightly higher interest rate to investors and require more of a down payment. Typically, banks will charge 1% to 1.5% more on the interest rate and require 25% to 30% down on an investment property. So just know you can’t buy an investment property with 3.5% down and 3.75% interest.
We want your real estate investing in Suisun to be a success, not a failure. Keep following our blog for more information. If you are interested in finding an investment property in Suisun, give me a call.
If you want to build wealth, real estate has consistently proven to be one of the unparalleled best means to do so. This can be attributed to the benefits that result from favorable tax implications, financial strength through leverage and rental income that will cover the expenses need to pay for the property. As a real estate agent, I am dedicated to helping first time real estate investors through the process of deciding if a property meets their financial goals, if the property makes financial sense as an investment and how to grow wealth through real estate investing.
www.solanopacific.com Nicole Monary