Buying a real estate is a commitment. It is therefore important that you are clear on what is your purpose for acquiring the property. Knowing upfront what you intend to do with the property helps you understand what are the key things to look for in a property. If you are buying a house and lot where you plan to stay most of the time, proximity to your workplace or where your kids are studying will be a key consideration. However, if your intention is to buy it for investment, the property's marketability and future resale value will be more important than its proximity to your workplace.
2. Size up your pocket.
Real estate property doesn't come in cheap so know how much can you afford. Calculate how much money is left from your earnings after setting aside first your basic expenses and emergency funds. This will give you an idea how much down payment and monthly amortization you can afford. Aim for a property that you can really afford so you won't end up your property being foreclosed.
Use the financial tool links on the left side bar to calculate how much you can afford and for mortgage or monthly amortization estimates.
Use the financial tool links on the left side bar to calculate how much you can afford and for mortgage or monthly amortization estimates.
3. Scout for a financier.
If you cannot afford to buy the property in full cash, scout for a private or government lending institution that can help you finance it. Although some property developers offer in-house financing, most of the time their interest rate is much higher. Have your credit limit pre-assessed and if possible get a pre-approved loan to save you from frustration from looking at properties you can't afford. This will also give you a better bargaining edge once you find the right property.
4. Get professional help.
If it's your first time to buy a real estate property, it will be beneficial for you to seek professional real estate broker for help. Talk to as many real estate professional as possible before deciding to buy one.
5. Do your homework.
Capitalize on the internet to do market research for the most reasonable price of the property within the location of interest. Validate the facts that the real estate professionals had told you. Don't get trapped by all their marketing sweet talks. List down the pros and cons and decide from there. What matters most is that at the end you are satisfied with what you buy and you can only have that if you do your homework well.
