With a home, you can get 2 benefits at once, namely rental income and capital gains. However, in order to get the two benefits optimally, there are several things that need to be considered when deciding which house to buy. In the meantime, you may also want to learn more about real estate from Daniel Ballerini.
We will explain about the 3 early steps you can consider when buying a house for investment.
1. Consider the Finances Have When Buying
The main purpose of home purchases that you do is to make finances healthier with the flow of income from rented houses.
However, considering financial problems is very important when deciding on a home purchase.
The price of the house to be purchased will determine how much minimum DP must be paid and how many installments need to be paid regularly every month. Do not let the installments issued each month burden your current financial condition.
The ideal amount of installments that can be taken is around 30% of the total income you get each month.
2. Determine the Location and Type of House to Buy
If you aim for the house to be purchased for investment in the future, the determination of the location and type of house is the next important step.
The bad and non-strategic location will be difficult to attract tenants to use it and also the development of its value can be slow from the average property price.
Consider the facilities that exist around the location, transportation facilities, public facilities, and strategic locations.
3. Prepare Capital for DP House
If you are able to pay a house down payment greater than the minimum payment, then the loan and the number of installments each month can be lower.
At present, the minimum value of down payment that must be paid for a house ranges from 10-20% of the selling price.
Where can you prepare a down payment?
Don’t save money saved to prepare a down payment for a house, because the time needed to collect it can be very long and time-consuming.
The best solution that can be chosen is to invest in investment instruments that offer competitive returns.