As we already discussed, owning a house is an expensive way to start your career or make big changes in your life. It’s also not necessary for most people!
In fact, only 20% of households have their own home. The other 80% are either renters or owners who live in apartments or condos.
So why would someone want to be a homeowner when you can’t even afford to pay your monthly rent?
It’s because homeowners enjoy lots of benefits that renters don’t. These include lower monthly costs (rental fees cover part of your mortgage!), tax savings (the government subsidizes owner-occupied homes), security (owning your home gives you control over it) and investment opportunities (buying a house is one of the best ways to invest money in the long term).
Granted, these advantages aren’t available to all income levels and situations, but they are important to consider before deciding if buying a house is right for you.
Fortunately, things get a little easier now. Because technology makes doing business easy, working with a real estate professional no longer requires you to go into their office every time you need them. You can directly connect with a professional online via LinkedIn or Google+, and if you ever run into trouble, you can use their tools to help you research and assess their quality.
Find a good location
The best way to invest in real estate is to find a great property that you want to own and then work with a professional business owner or manager to help you achieve your investment goal.
Finding a great location is one of the most important things when it comes to investing in real estate. You will need to make sure that this space is large enough for you to feel comfortable being around people frequently, as well as having adequate parking so that guests do not have to search for spaces or be charged extra money for finding one.
Landlords look for people who are trustworthy, pay their bills on time, keep clean surroundings and don’t cause too much noise or trouble for other tenants. Given these qualities, it is very easy to see how significant this piece of advice is!
By being conscious about your personal safety, you have signaled to potential landlords that you can be trusted. This helps ensure that you get the chance to meet your dreams of owning a home owned by a successful business person.
Prepare a budget
While it is not recommended to buy real estate as your only income source, knowing what you have and how much money you are willing to spend makes a difference in whether or not you can actually do it. If you know that you do not have enough for a down payment, then waiting until later may be your best option.
There are many ways to earn extra money, including through surveys, doing odd jobs, and even starting a side business. Having more than one source of income helps prevent gaps in revenue, which can strengthen your financial position.
By having an adequate amount saved up, you also give yourself some leeway if things go wrong at work.
As with any investment, there will be costs involved in buying a house, but timing is important here. It cannot hurt to research and compare various homes and sellers’ properties before making a decision. Buying a property that seems like a good deal could still cost you more due to high fees that carry along with it.
It is always better to save than to invest, unless you have no other choice. But when you do, investing in a home is very possible if you make sure you understand the process and are aware of all the rules.
Get a good mortgage
When it comes down to buying a home, one of the biggest decisions you will face is what kind of loan to take out. This really depends on your situation and how much money you have in the bank.
Many people start thinking about real estate when they have enough saved up for a house, but before you even look at houses, you should make sure you have a clear idea of what sort of credit card debt and monthly bills you can afford.
It’s very tempting to think that once you have saved enough for a house, you can go ahead and buy a property, but waiting until you feel comfortable with your finances may prevent you from owning your dream home.
Choose your tenants carefully
As we mentioned before, criminal histories are important to consider when looking for renters. Unfortunately, most people do not update their records or tell the truth about themselves when they apply as a tenant.
It is very common to find fake documents in applicants. This can make it difficult to evaluate their credibility. In fact, some may even be using the new application process as an opportunity to create false identities so that you cannot verify their background.
Tenants with illegal activity often lie about it during the interview process. They might state that they have lived there for many years under another name or indicate that they will handle any issues related to the house.
These types of lies should set off warning bells and preventions. You would probably want to look more into their story before agreeing to let them move in! If you notice things that seem suspicious, chances are other people already did. Report it!
We recommend doing your research online, by talking to friends, family members, and coworkers, and then checking out social media accounts like Facebook, Twitter, and Instagram. All three of these contain valuable information about individuals and what they share around people.
Do not rent to your friends
As we mentioned before, investing in real estate is an incredible way to make large income shifts or get out of the stock market with a small investment. However, before you dive into that idea, you must know how to buy a house!
Most people start trying to invest their money in real estate when they think about buying a home. Most people begin looking for houses and then have to find renters who will pay the monthly mortgage and utility bills.
This can be tricky as most landlords require at least a two-month rental contract before agreeing to purchase a leasehold property from them. If you are able to do this, great! But it takes time to look for a place to live and time to meet these new landlords and tenants.
There is an easier way to own a house
We recommend investing in residential real estate instead of owning a house directly. This is because investing in REITs (Real Estate Investment Trusts) allows you to earn high returns while avoiding the headache of being a landlord.
Insist that they pay your bills on time
As mentioned earlier, one of the biggest things people lose with real estate investing is the luster. After all, it’s not quite as glamorous as buying and selling cars or having a boat.
However, one can still make some excellent money if ones main focus is on building up a strong community.
You know what else creates a great community? People who are loyal and trustworthy. This includes paying their debts on time so you can trust them financially and vice versa!
That’s why it’s important for potential investors to check out how well someone pays their bills in advance. You want to be sure that they will hold onto their money and not spend frivolously without saving.
On the other hand, you also want to make sure that they won’t ask you for large loans later by proving that they can handle such responsibilities now.
Know your neighbors
As we mentioned before, one of the biggest ways that people lose money in real estate is by buying a house they can’t afford!
A lot of times, this happens because people don’t know their neighbor well or at all. They may not have ever seen someone else go through a similar process as them, nor do they understand how much information is available to them via social media and other sites.
By being aware of what kind of houses are on the market in your area, you will be able to recognize if a place is overpriced or under priced. You also want to make sure it is a safe neighborhood, and that there aren’t too many homes for sale at once, otherwise you could end up paying more than necessary.
Keep your apartment clean
This is one of the most important things to do as an investor when it comes to real estate. If you have to run out because of work or family, your house will get messy and that can be hard to fix later.
As an owner of a property, you’ll likely find yourself in the position where people come and go from being at your home. More often than not, these guests will leave something behind which other tenants may want or need – such as clothing or shoes.
This could potentially waste your time having to buy new items for them or going shopping with them after they left! Or worse, their belongings might even cost you money to ship back if you agreed to store it for them while they were away.
Keeping our homes tidy helps us feel more comfortable in our surroundings and gives us some sense of control over our lives. For this reason, it’s a very valuable asset.