5 Questions You Should Ask Before Acquiring Your First Real Estate Property

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Real Estate Agent

For some, an investment in real estate can be tempting. It's just something that's been the source of success for many wealthy people. According to billionaire Andrew Carnegie, investing in real estate made 90% of millionaires wealthy. However, before deciding to give up your hard-earned money for a real estate investment, there are some things that you should know. Below are some questions to ask yourself before investing in real estate: 

1. Can I pay the monthly amortizations for the property for a long time?

Yes, it's tempting to buy real estate, mainly because of good marketing tricks like discounts and sales. However, you should always think about your cash flow and your ability to pay. Don't be an impulsive buyer because it will only cost you big after some time. 

Before jumping into investing, check the other expenses aside from your housing loan's monthly amortization. Frequently, sales agents don't usually disclose some expenses like homeowner's insurance and mortgage protection insurance right away.

2. Will this property give me the most value-for-money?

A trick to get real estate property that is lower than its fair market value is to acquire a foreclosed property. You can also personally look for people who are no longer interested in keeping their property, or people moving abroad. You can try to sway them to sell their property at a lower cost because of their high intention of letting it go.

3. What are my long-term plans for the property?

It would be funny to buy a property without an actual goal of utilizing it, right? Set your goals because this will be your guiding point on how you'll use the property. A common misconception for most people is that real estate property is already an investment. However, it will only be an investment if you'll profit from it. 

Ask yourself if you want to live in your property. Or if you see it more as a space for renting, or a space for business, or other things. When you're able to identify your property's purpose, it will be easier for you to choose which real estate property suits your needs.

4. Is my real estate agent reliable?

Always make it a point that you deal with the right people. Hiring an unreliable real estate agent equates to losing your hard-earned money. Hence, always look for reliable real estate agents for and other areas. Try to check their credentials by asking for their company's accreditation, references from former clients, and a real estate broker license. For example, if you want to get in Tamarindo Costa Rica real estate, visiting this website will help you find an agent who will gladly help you find the property of your dreams.

5. Is the timing right?

No matter how excited you are to buy your first real estate property, always consider the timing. Ask yourself, is it the right time to buy this property? As said by T. Harv Eker, "Don't wait to buy real estate, buy real estate and wait."

It's essential to note that buying real estate property early can save you money. Unlike when you're in a rush to buy and move in immediately, properties that are on its pre-selling phase costs less.

Conclusion

Investing in real estate property is not a piece of cake. Hence, you must consider everything before jumping into investing. Through your evaluation and research, you can come up with a real estate investment decision that you will never regret.

 

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Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Very good post and well presented. I deal with a lot of first time home buyers and investors and these are great points for both of those niches. 

Oct 28, 2019 01:00 PM #1
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