Properties Investment Tips For Beginners
In youth, many people compete to invest for their old age. One of the most popular investments lately is properties investment. There are many kinds of properties investment, it can be in the form of a vehicle or a house. The most popular properties investment is in the form of housing because it is considered more profitable in the long term. The success of owning the first properties is the most proud thing for novice investors. In order to achieve the intended success you need to set the right strategy to achieve the goal.
As a beginner, you should not take hasty steps because there are many things to learn before starting properties investment. One of the things that must be considered before buying a properties is that the properties buying process is not easy. Sometimes there are many steps that must be passed. Pay attention to the payment system you will choose. Here are 10 steps to start properties investment for beginners.
Choosing the Right Location
Location is one of the things that must be determined first before you want to buy a house or start a properties business. People usually decide to start building a house because of the strategic location. For this reason, location is the main factor that must be considered when starting properties investment. The location also greatly affects the selling price of the properties, the strategic location is easy to reach and close to the center of the crowd making a house have a high selling price. Like nnn properties for sale,
In addition to determining the location, cost is also one of the factors that determine people to invest in properties. You must prepare funds to cover the basic costs and other costs that become obligations. Sometimes the amount issued is not small and makes novice investors surprised. Here are some costs that must be prepared before starting to invest in properties.
- Anniversary fee
The fee for the finished sign will be determined by the developer. However, if you buy properties through the secondary market, the fee for the sign is determined by the seller of the properties. The sign-up fee is a form of clarity when you buy a house or commonly known as a booking fee.
- Down payment
After you pay a sign-up fee, the next obligation is to prepare a down payment. You are required to pay a down payment if you buy a house through the developer. Meanwhile, if you buy through the secondary market, the down payment is estimated at 20%-50% according to bank regulations.
For beginners, triple net properties for sale is the best choice investment is usually done by way of credit or installments over the next few years by paying installments every month. The amount of the installments is determined by agreement between you and the bank, but the amount will not exceed the amount of your and your spouse’s income.
Choose a Trusted Developer
There are so many developer in properties investment, before starting to invest in properties, it is important for you to know the background of the developer of the properties you want to buy. Don’t necessarily trust well-known developers. Make sure the performance is also good and can be trusted. Choose a developer who has at least 5 years of experience in the properties sector. All information about the developer can usually be obtained through the related website.
Check Market Price
Don’t be in a hurry when you want to buy properties. Numerous things should be inspected prior to choosing to purchase. A certain something you should pay attention to is the current market price. You must know the market price of a house that you want to buy. Checking market prices can be done online or do direct research. That way you can get the best price for your properties investment.
After checking the market price, you also need to know what facilities are provided by the developer. Adequate facilities will also increase the selling price of the properties. Pay attention to the availability of internal and external facilities. Internal facilities include places of worship, sports arenas, play areas and standard infrastructure such as housing gates. Meanwhile, external facilities are facilities that surround housing such as office centers, schools, hospitals and shopping centers. This is very important for those of you who are just starting to invest in properties.
Choose a Tenor That Suits Your Ability
When you apply for a mortgage, the bank will offer you various tenors. The tenors offered range from 5 to 10 years. The availability of the tenor will be calculated by the bank based on your ability. Do not force choosing a short tenor if you are not financially ready, keep in mind that properties investment is a profitable long-term investment.
Land Purchase Letter
Another thing that must be considered when investing in properties is to ensure that the land certificate issued by the developer is legally valid. As a novice investor, you should Be observant in choosing a housing unit as an investment properties. You can ask this through a notary who takes care of the land deed. These letters will determine the status of the plot of land that you own and the whole lot of housing.
Preparing Additional Funds
When making a properties sale and purchase transaction, you must prepare more funds because it is possible that there will be additional costs that must be borne in the process of buying properties investment. The following are some of the additional costs that may appear in a triple net lease for sale and purchase transaction.
Insurance costs usually cover life insurance at 1% to 2% of the total loan. In addition, there will be fire insurance of 1% of the total loan.
A notary is the party who will help you a lot in taking care of the deed and certificate of sale and purchase. Notary fees are your full responsibility. The amount of the notary fee is adjusted to the needs of the buyer.
Tax is an obligation that cannot be avoided in every properties sale and purchase transaction.
Unit Handover Time
After you have completed all the steps to buy a house, then make sure the time for handing over the house or other properties you bought. Do not let any delays that will harm you in the future. Do not let your main goal of properties investment will actually be detrimental.
Those are some things you should pay attention to when you want to start investing in properties.