España Condo Resort Pattaya

24/09/2022

13/07/2018

Buying real estate, whether you are buying the family home or an investment, is one of life's most important financial decisions.

However, in buying an investment property, it is wise to remember that you are making a business decision. You are not buying from the heart but from the head. You are buying the property because you expect it to appreciate in value.

Common mistakes made in investing are that people look for the same things they would want in a home or buy in their local area so they can 'keep an eye on it'.

In searching for a residential investment property it is important to consider three things:

Assess your financial position

What are your cash reserves and what equity do you have in your present home? Look at your long term objectives, for example, will the property be part of your retirement financial plan?

Potential changes to your current situation should also be factored in such as the birth of a child or the loss of one income.

It is wise to seek advice from an investment adviser or qualified financial planner to help determine goals and strategies.

Decide on your strategy

Some properties provide good rental returns but have little potential for capital growth; for some the converse is true. It is more difficult to find the ideal of high yield and high appreciation potential.

It is important decide on your strategy before you start you search.

Assess the viability of the investment

You should try to assess the soundness of your investment. Study the capital growth history and the potential rental income.

If you are familiar with computer spreadsheets, try to analyse the impact of an interest rate change or a potential vacancy period.