How to Buy a Real Estate Property

Want to invest in real estate? Here’s how in three easy steps. Investing in properties is one of the smartest things you can do with your money. It offers the promise of passive, steady income. It also provides you security, knowing that you have an investment whose value often appreciates over time. Thinking of buying your first property? Here’s how:

Do a financial check.

It’s important to determine what you can and cannot afford before looking at properties. This will ensure that you don’t end up with something that’s more than what you can pay. Analyse the following details before deciding:

  • How much can you afford a down payment? – The down payment is the money you’ll have to pay upfront. Your savings account is a good place to start. Some people will borrow money from lenders to make up for the cash they don’t have. As much as possible, avoid this. You’ll end up paying two loans in the future.
  • How much money is the bank willing to lend? – Property payments are usually done in instalments unless you have the money to buy the entire unit upfront with cash. The instalment payments will be made through your bank. It’s up to them if they’re willing to lend you the money for the remained of the bill, after the down payment.

Take note that the worse your credit rating is, the lower chances you’ll get for loan approvals.

Find a property.

Finding a property is all about deciding what kind you want. If you’re in for a residential property, you can get condos, house-and-lots and apartments. Those who are planning to invest in commercial spaces will need a place with special permits in a good neighbourhood with a lot of traffic. Some will choose to invest in industrial properties or empty lots.

Find a realtor.

A realtor can help you make the best decision when investing. They can give you advice on the best properties for your lifestyle. They can even analyse your finances to help you get the loan deals you want. If you want a sure way to make a good investment, calling a relator is the way to go.

Looking to invest in real estate? McAllister Realty’s property portfolio can be viewed here.