Destinations Magazine

Adulting 101: Investing in a Real Estate Property

By Kirkanatomy
Adulting 101: Investing in a Real Estate Property

Investing in real estate has numerous benefits, with valued assets, property investor can experience predictable cash flow, excellent returns, tax advantages and diversification. As a property investor with 3 properties in three major cities in the country, I learned the value of investing in a well – chosen assets. I was able to generate cash flow even in this COVID – 19 crisis through rental income, profits generated by property – dependent business activity and appreciation. Your property values tend to increase over time, and with a good investment, you can turn a profit when it’s time to sell. Rentals increase freeze, but not the value of the property itself.

Going back, when I was starting to invest in real estate, I always make sure that I have educated myself on the headline figures like the total contract price or the overall mortgage amount, because I don’t want to dive in an engagement that will make my life broke. Mortgage! Mortgage will either be your lifesaver or your greatest nemesis. Mortgage is a loan that the borrower uses to purchase or maintain a home or other form of real estate and agrees to pay back over time, typically in a series of regular payments or monthly payments. The property serves as a collateral to secure the loan. Well, we don’t want a scenario where our house will be forfeited in the event of a default. With that, my constant companion is the handy mortgage calculatorwhich helps me decide if I can sustain paying the property and will not eventually put my property on a foreclosure status because I failed to pay the mortgage, and since the main reason of getting a property is an investment and not otherwise.

Why use a mortgage payment calculator? Simple, you need to budget your expenses from the simplest form of your costs to your actual loan. Determining what your monthly payment will be is an important part of figuring out how much house you can afford. That monthly payment is likely to be the biggest part of your cost of living. I particularly love the mortgage payment calculator because it helps me understand how much I need to pay each month for any size of mortgage, with any rate. It helps me estimate my monthly payment and amortization schedule for the entire duration of the loan. The mortgage calculator allows me to test down payment and amortization situations and compare variable and fixed mortgage rates, lower my monthly mortgage payments. Also, in some mortgage calculators. It also evaluates my mortgage default insurance premiums and land transfer tax.

With this simple tool, I was able to manage my monthly expenses and actually gain profits. You can never go wrong in investing a property with proper research about the developer and bank whom you are getting the loan.

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