Tips On How To Invest In Real Estate Even When Low On Cash
Low on funds? However, being low on cash shouldn't stop you from starting off as a real estate investor. Though a barrier, being low on cash, is not something you cannot overcome. It only requires certain right moves to make the right investment. MakaaniQ lists tips you could follow if you want to build a real estate investment portfolio with less cash at hand:
Look for emerging destinations
This depends on the kind of money you have at hand, how much you want to invest and how much you would need to borrow from a financial lender. The properties in the city centre or developed localities will sure be off your radar. Hence, it is time to look for properties in emerging localities. Read about various localities in the suburbs of the city. Look for the ones that have multiple affordable options and the status of development that can help you make a guided decision.
The right financial advisor
Want to take a home loan for the property? Consult a financial advisor who can help you find the right lender. He can look for best of the home loan deals and maximise your borrowings.
Have the right property in mind but lack money for down payment? You could buy the property with a friend or a family member who is keen on investing in real estate, too. Co-ownership could better your chances of taking a loan, your overall buyer credibility, among others.
There are some risks involved, too. In case the co-owner loses his job or has a financial crisis, you will be the one liable to pay the complete loan.
The right property
Not talked about much, but this could be a profitable way of investing in real estate. Avoid projects that have a large number of units, rather, opt for low-rise projects with less than 50 units of 1 or 2BHK configurations. These apartments would come cheap and in future will have less competition when you are up for selling it.