Buying Your First Investment Property?

Real estate has its own share of producing many of the world’s well-off people so there are ample of reasons to believe that property is a stern investment. But similar to any other investment, it’s better to be informed about the space before diving in. Unlike investing money in stock, which might cost a dollar or two per share, you could easily get hold of six figures into your first property. You must go through the information by Dream Homes Chennai before starting on your new career as a real estate magnate.

Pay Down Debt First

Savoir-faire investors might bear debt as component of their investment portfolio, but an average person perhaps shouldn’t. If you have pending debts like student loans, due medical bills or your kids will soon attend college, buying a rental property may not be the appropriate move.

Arranged the Down Payment?

Investment properties commonly require a larger down payment as compared to an owner-occupied construction and have more rigorous approval requirements. The 3% you put down on the home you at present live in isn’t going to work for an investment property. You would at least 20%, provided that mortgage insurance isn’t accessible on rental properties.

Be Cautious About Higher Interest Rates

The expenditure of borrowing money may possibly be cheap right now, but the interest rate on an investment property will be much higher. Keep in mind that you need a credit payment that’s low enough in order that it won’t consume too heavily into your monthly profits.

The Bottom Line

You need to have realistic expectations while buying a home. Just like any investment, a rental property isn’t going to generate a great monthly paycheck for a while and selecting the wrong property could be a terrible mistake. Consider working with a knowledgeable realty agent on your first property or rent out your own home to make the most of your deal. 

Here Are the Things Which Can Go Wrong With Real Estate Transaction

Real Estate industry comes up with something new each day. What keeps this business get going is that there is never an ordinary day; in fact, no two transactions are ever alike!  Some transactions go very smoothly, you turn up at the closing stage and can't believe that there hasn’t been any hurdle on the road. Others...well, they aren’t fortunate to reach at the closing table this smoothly! As per DreamHomes Developers, the last year, realty industry had some of the most random things going wrong during the deal - here are few for the year, so far!  

Buyer’s Regret

The real estate industry is all about bidding wars, its human nature to want to be the victor!  Few days down the line, after leading the bidding war, particularly if buyers have gone considerably higher than the list price, buyers tend to regret a little. Some even go to the extreme levels, ultimately making up their mind to terminate the contract for purchasing the home.

Buyer was pre-approved but had no credit!

As per Dream Homes Chennai, this has happened to many buyers just before closing the deal.  The lender had issued a pre-approval memo based on the stability of income only.  The buyer never had any sort of loan or credit card and hence, when the documents reached the underwriter, the file was rejected!

Buyer switches auto lease to purchase (or, buys a new car)

This doesn't take off with lenders if their debt-to-income ratios are rigid. It's recommended not to make any purchases using credit or savings until you reach to closing.  In this way, you can avoid the trouble of losing your new home along with all of the money that you've already exhausted in grounding of being the new homeowner (earnest money deposit, inspection costs, , title search costs, due diligence fees, appraisal costs, etc.)