Why are you buying?
I have heard people say that the real estate industry is booming and people are buying properties or I just want to buy so that I can be my own landlord. True, but this should not be the only reason why you are buying a property. You can also make it an investment opportunity even if it’s your first property. Here is my advice to prospect and clients;
Have a goal. It is important to clearly state and understand why you want to add that property to your real estate portfolio. You must buy for a reason. Additionally, here are a few other reasons some other people buy properties;
• Some buy properties because they want to fund their future dreams. They often say I would like to buy now and sell in five to ten years in other to fund my children school fees. Remember, properties strategically bought in emerging locations would have reasonably appreciated in five years.
• Some buy properties as equity for bigger investments in the future. They use the returns as running capital for other businesses.
• Some people buy properties to become a citizen of another country. Many developed countries offer investments options that grant you their citizenship ticket.
• It helps determine which location and land title to consider at the point of purchase.
Having a goal will help you decide on what type of property to buy or whether to go for a short or long time investment.
Draw a statement of all that you have and all that you can afford, this will help you decide on which property you can invest in.