Everybody Loves Buying Property But Is Property Actually A Good Investment?
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Everyone needs housing and this is surely one of the reasons why the real estate market has proved itself as an interesting investment tool. Unless there are exceptional circumstances, a well-located and well-maintained property generally increases in value year after year. although this is not to say that these long term increases have not been interspersed with both property boom and bust. Historically, the gain exceeded inflation. And because the real estate market is less volatile than the stock market, people who can not tolerate the risk can find it.
It is likely that the purchase of a first home or flat will mark your debut as a real estate investor. By becoming an owner, you will possibly pay more for your accommodation than when you were a tenant. In return, you acquire a significant asset that can, for example, be used as an alternative to a pension fund.
Then, manage your mortgage as well as possible: in addition to increasing your down payment and obtaining an advantageous interest rate, make payments every week or every two weeks and make sure to reduce the amortization period. You will save tens of thousands of pounds in interest charges!
Investing in real estate is also taking advantage of the fact that repaying your mortgage eventually creates equity that can leverage you to buy other property. Indeed, if your credit report allows it, you can refinance your first mortgage up to 80% and use this capital to acquire a rental plex, a commercial space or this cottage you have dreamed of for a long time …
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If you go in this direction, do not do it blindly! Learn about the real estate market and look for deals. According to specialists, a good deal is a good quality property that you will pay 10% less than its real value and which can be resold or rented as is quickly, with profit in passing.
To maximize your investment, you are advised to start with small real estate located in a safe neighborhood near services, which will make it easier to rent or resell it later
In the case of buy to let rental property, make sure that rents cover your expenses and mortgage expenses, taking into account that these mortgage interest charges are then tax deductible.
In real estate, the misfortune of some is often the happiness of others. Good shots often come from the fact that homeowners have to sell quickly, for example, because of divorce, estate, bankruptcy or family bereavement. Moreover, the takeovers by the banks make it possible sometimes to get hold of a property at a good price. However, to take advantage of these opportunities, you must remain well informed and be prepared to make large sums in a few days.
One last important point: forget speculation! For example, do not buy a property in the hope that the sector in which it is located will eventually grow, or in light of certain forecasts of market developments … No one has a crystal ball. Bet on concrete, on quality and on maintenance. A building in good condition will always be worth its weight in gold.