It can be tempting to buy property based on the idea that its value will rise. While the idea of owning a property in the future is certainly appealing, it is advisable to keep in mind that many homeowners lost money after the real estate market collapsed in 2007.
They found themselves owning homes that were less than they paid for them. Similarly, if you buy property on the basis of rising property values, you will have to make allowances for mortgage payments, routine maintenance and upgrades.
When considering purchasing rental property, consider the location. Do you want to invest in a residential area or a commercial area? How much money do you have in the bank?
How much money can you afford to pay monthly? What is the best location to live in? Are there schools and business facilities nearby?
Are there any public transport options? Will it be easy to finance? Are you willing to make personal contributions? You should be prepared to pay up to 10% of the purchase price to make the property your own.
You should also consider the property’s affordability. Depending on your salary and the size of your investment, you can buy a rental property that is close to work.
However, you should remember that it’s essential to keep your EMI low. You should be able to make the payments without affecting your salary. In addition to calculating your EMI, you should also factor in at least 10 to 15% of your own personal contribution because banks rarely lend 100% of the price.
If you want to buy a rental property, you should consider the location of the property. If the rental property is going to be your primary home, look for a property that is close to work or school. You should also consider how much you can afford for the EMI, and whether you can afford to make 10-15% personal contribution.
Don’t forget that banks won’t lend you 100% of the purchase price. Be sure to plan your finances accordingly.
Once you’ve decided on the location of your rental property, you can decide how much you’d like to pay in EMIs.
The more affordable your EMI is, the better, but you’ll have to consider your personal financial situation, as well as the location of the property.
You’ll need to decide how much you can afford to make the monthly payments. Ideally, you’ll be able to make an EMI that is 40% of your salary.
If you’re considering a rental property, you’ll need to figure out how much you can afford. If you’re working full-time, it’s wise to choose a property that’s close to the place you want to work. You’ll also need to decide whether you can afford the EMIs and the additional 10% in your personal finances.
In the long run, you’ll find the perfect rental property based on your needs and budget.