5 Steps To Do Before You Start Investing In Real Estate For Beginners
We often get carried away by stories that we hear from people around us could be friends, relatives, neighbors boasting about how they earn by investing in real estate and we think if they can do it then so can we, However before jumping into the real-estate pool one must first complete certain steps to avoid risks and disappointment in the future.
So here are the 5 Steps that you must do before Investing In real Estate.
- Sort Your Finance
Before Jumping into investing in real estate you need to sort through your finance because to Invest in Real Estate you need Money. You need at least 15%-20% of Money as down payment while buying a property the rest can be managed by acquiring a loan. However, first, you need some money in hand. So before thinking of buying a property see to it that you have money saved to make the down payment if not then start Saving money now !!!!
- Credit Score
When You go to a loan lender the first thing they will check is your credit score, hence its important that you maintain your credit score because it reflects on your ability to pay the loan back. A Credit score between 750-900 is considered Ideal as you can avail good deals, a score between 300-549 is a bad credit score. So if you want to invest in real estate and need a loan for the same then make sure that your Credit Score is between 750-900.
- Paper Work
Make sure that all your paperwork is sorted beforehand like your papers of Income Tax returns filing for the last five years well usually it’s the last three years however it’s better to keep a backlog of five years you may never know when you need it. Likewise, your salary slip for the last five years. If you are not a salaried person then a statement of proof of your income could be your bank account statement of the last five years or your account book if you are into business. When going to apply for a loan it is important that you have proof of steady income which will let your lender know that you can pay back the loan.
Before looking for property it is better to get approved by Loan Lenders as then you will not face any disappointment. What happens is that we go and look for a property we may end up liking something that is beyond our budget and be rejected by a Loan lender. Hence it is better that you first get yourself evaluated by Loan Lenders who will let you know the amount of loan you are eligible for now you can go ahead and look for properties within a specific budget. Upcoming properties in sewri you may see the property shapoorji pallonji sewri they are offering at very good rate of interest.
Also, make sure that you don’t stick to one particular loan lender but go to different lenders this way you will be able to know of different offers and deals available as different Loan lender have different parameters of eligibility.
Once You get approved by loan lenders for your loan you can start your Real Estate investment through proper research. That is the kind of area you want to invest in? the size of the property? the market value of the property shapoorji pallonji sewri 2 bhk ?, what is the long term projection for the said property in terms of profit?, whether you want to invest in land, independent homes or apartments or commercial complexes, and so on. Also if you want to go through a broker or want to do it on your own.
Once you are decided you can start looking for properties as per your requirements and look for as many properties as possible so that you are exposed to various deals & offers.
Now That you have understood these 5 points you are absolutely ready for Investing in Real Estate, But again my advice to you will be don’t rely on a single piece of information. Do as much research you can to gain knowledge with the high-speed technology world that we live in there is no dearth of information so go ahead do your own reconnaissance and once you are well equipped you can start investing in Real Estate.