Every important step we take is backed by a plan or a decision. Committing to a Mortgage is certainly no exception. Buying Real Estate could possibly be the most crucial decision you make for ensuring your financial freedom. Some people consider buying Real Estate not an option when looking for a return on investment. However, this is not the case. Buying Real Estate is the right decision for long term investing and even short term if you do your homework and plan right.
1. Income Stability
It is very important that you consider how stable is your income stream is before making a decision to commit to a Mortgage. Deciding to buy a property when you are making money sounds like a lucrative idea but you need to make sure the income will sustain in order to make your Mortgage payment or at least have enough saved at your disposal. Returning the loan can be very difficult if your income spirals downhill.
2. State of Affairs
Multiple situations can arise in your life. You must consider the factors such as marital status, children, long term location plans, travel plans, job transfers, etc. This can help in determining if buying Real Estate is right for you at this time or not.
Furthermore, location, location, location. The location of a property is an important decision when buying Real Estate. It can have a large impact on your future finances for better or worse. Buying the property in the right place can potentially be a huge positive investment because it is an asset which will increase in value with the passage of time…especially if it is in a location that is growing in population or has economic development plans nearby.
3. Future Goals
You should be clear about what your end goal is before committing to a Mortgage. Do you want to buy to save your money in the form of an asset, have a home for the long term, or want to buy property for investment purpose? Make sure to determine your preference and buy Real Estate accordingly. Consult with a Mortgage Professional prior to jumping into a Real Estate contractual commitment.
If you consider these three above tips, you will make a good decision that suits you. It has been proven over and over again by many individuals and companies, investing in Real Estate certainly has the potential to increase your chance at financial freedom. Before committing, have a plan, in order to ensure committing to a Mortgage is the right investment for you!