A huge fraction of world’s wealthiest people have found to be more inclined towards real estate investments. Perhaps that’s the reason as to why you must also go for it. But it’s advisable to be well-versed before you dive in just like any other investment. For sure, putting in thousands of dollars needs you to have the well-brainstormed investment strategy that’s most likely to turn up lucrative in the end. So before you head on taking a huge amount into huge money-mania, it’s worth keeping in mind a few important tips. Let’s dig in;
Can you handle it?
Off course I can, it’s no rocket science. If you said this, think again. No necessarily, the rocket science is the only things in this world that can’t be handled or managed by an unskilled person. If you think so, enter the real estate world. It wasn’t mean to scare you anyway, but a glimpse of reality would work even better. Are you aware of every tool you have in you tool box? Can you handle the repairs of the drywall? How about unclogging a toilet?
If you can’t then you might have to call someone up for this but that will eat your profits. People having two or more properties often prefer to do repairs by themselves instead of spending huge amount on the labor of those repairs. If there is some property for sale in Sharjah and you are up for buying it, just make sure you look after the repairs by yourself.
Pay the Debt First
If we talk about the regular investor, they usually carry the debt as partof their investment routine. But how about the average person then. The must avoid the debt as it’s really necessary to cut the long term hassles. In case you have the unpaid medical bills, student loads or children soon ready to attend the college, investing in the property might not be the best options this time. You must think and plan for the long term investments but you can’t risk the necessary resources for your family.
Getting the Down Payment
When it comes to the investment properties, they generally require the larger down payments as compared to the owner-occupied ones. That’s why they usually have more stringent approval requirement. The new investors, who usually don’t have enough idea about the property investment perceive that they simply have to put down the 3% of the total amount as the down payment. But that’s not the case at all. In fact, you will have to pay at least 20% of the total amount as the down payment as the mortgage insurance isn’t really available on the rental properties. So what’s your plan?
Higher Interest Rates
If you have stumbled upon some good property for sale in Sharjah and you are up for making your investment, you need to think of the interest rates as well. The borrowing amount might be lower right now but the interest rates on this investment might be higher than the traditional mortgage interest rates. All you need is the low mortgage payment so that it won’t negatively impact your monthly profits considerably.
Are you looking to invest in some property in Sharjah? Here are a few tips that you must consider. Just check out the article now