When you are about to invest in real estate, see if you can pay it with cash, if you can sell it again without an issue and if you can include all costs in the final price.
Many of you must be aware of real estate investing by now, but ‘is it a smart choice?’- That’s a question almost everyone has. Well, it depends on the below factors.
Paying with cash
Real Estate| Img via Pxfuel
Investing in real estate in Sri Lanka requires a huge amount of initial cash. If you are buying a house and think of funding the purchase by borrowing money, make sure you at least have money with you to pay the mortgage. You can’t depend on the rental income for this!
Planning the costs
If you are thinking to buy a house, do the renovations and then sell it to a third party, make sure you include all the repair costs in the final selling amount. If no one is willing to buy a property at that rate, then there’s no point in you bearing all the costs.
Research the property before purchasing
Before purchasing a property, see if you can resell it without an issue. If you are planning to invest in an apartment of John Keells Properties, you know the demand will never go off. This applies when buying lands too. The deeds should be clear in all aspects.
Have a small start
If you are a beginner, you just have to start small. If you have one room at your home that’s not used by anyone, rent it out. Get a monthly income as additional!