Buying property for investment purposes can be a shrewd endeavor to build up your personal wealth. However, purchasing an investment property doesn’t come cheap and there are often additional expenses that need to be considered. For example, you might need finance to cover the deposit upfront, or you may even have no money at all and need loans in order to raise finance for your purchase.
In order to purchase a property for shubhodeep prasanta das investment purposes, you need to have the required funds in your account. This could be a lump sum deposit or a loan. There are many ways you can raise finance for your purchase but there are a few basic things that all savvy investors do. Here are my top tips for raising finance:
Determine your down payment
One of the biggest mistakes people make when trying to raise finance is that they have a large deposit too. This is the equivalent of paying rent before you purchase a property and so it is a waste of money. It’s just not advantageous to start out with such a large amount either, as in many cases these extra funds can be invested elsewhere and would only increase the overall return on investment.
Understand your repayments
This really is one of the most important things you can do to raise finance. It is vitally important that you do not listen to those who tell you that it is better to take out a loan or take on interest over time. The big mistake people make with this approach is that they usually pay off the loan before they have even started making a profit on their investment. You need to consider your repayments before you buy, as it is a lot easier for them later on to take a loan instead of selling or giving up equity in their property.
Consider your other options
If in some cases you have no money at all to buy a property, or don’t want to use your own savings to pay for your deposit or mortgage, you need to consider your alternative options. You may be able to raise finance from the banks, friends or family and grant bodies.