Poverty is a forbidden garment that no one wants to wear. No matter how great an orator you are, you can’t present poverty to the world as a princess charming enough to be desired. The question “Do you want to be poor?” would receive the same negative reply no matter who you ask. So what’s the way out of poverty? The answer to this question however varies as you move from one person to another but the common denominator would be “more money”.
Today, the investment seems to be the mantra on the lips of everyone who wants to part ways with poverty. Almost all you hear at a financial conference is invest! Invest!! Invest!!! And if you’ve attended quite a few you would agree that Real Estate is the new oil. As appealing and wonderful as the idea of investing in real estate is, it’s a land full of mines and so you must know where to tread. For some, it will be a step into a plateau of financial security while for some it will be a dive into the river of regrets, despair, and depression. So before you take the decision to go into real estate, you need to be sure you are ready.
How do you know you are ready to invest in Real Estate?
When you are financially stable
If you are still in one form of debt or you are struggling to pay your bills then it’s a sign that you are not yet ready to own your own home. Do not compound your money problem by thinking you need to invest in real estate just yet, just wait till you are more financially stable before going down this path.
When you have a saving habit
Investing in real estate usually requires a down payment at least, and so you must be a person who has savings. Also note that a down payment doesn’t mean you have paid it all, so a good saving habit will help you to meet up with the scheduled payment you are involved in. Using a service like Mint can help get your finances in order and on the right path.
When you have counted the cost
The fact that you have money to buy a house now doesn’t mean you should go ahead and buy one. Before you invest in real estate, you must be able to put into considerations the extra cost that would be needed after purchase. You must be ready for the responsibilities that come with ownership such as after-tax and other hidden expenses.
Investing in Real estate is a wonderful decision to make, however if you do not consider these things, it may be the worst decision a person would ever make.