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Property Crossroads - Real Estate Info

Real Estate Tip No. 3 : Have a Plan

by Maricel Ferrer-Custodio on April 27th, 2007

Two of the most sought after investments in the world is real estate and stocks.  They can both give you thousands to million of dollars in profit but also losses.  Just like any other investment, there are risks involved.

For any businessman or investor, they know that risk is just part of doing business.  However, for the first home buyer or private use property buyer this risk is magnified because of their lack of experience in the trade.

But, this should not be a hurdle for someone to be successful in buying their own piece of real estate.  Anyone, can make calculated risks if they have a plan.  It doesn’t have to be complicated. What’s imporatant is you  focus on what you want to do, you carefully evaluate the steps or means to achieve your goal, and prepare yourself to put your plan into action.

Here is a simple plan:

Goal:  Buy a residential property

Timeline: 1 to 2 years

Steps to achieve it:

1) Have a steady source of income

2) Build up my savings for a deposit

3) Evaluate my expenditures and have a budget in place.

4) Have a criteria for the property I want to buy

5) Start evaluating the areas where I want to buy

6) Narrow down my choices to specific key areas that fits my criteria

7) While building up my deposit and getting my finances in  place, I will start familiarizing myself in the areas that made it to my criteria of property to buy.

8 ) Once I have the required deposit, I will endeavor to save for a contingency fund. One way of doing it is practicing I have a loan to pay already.  I will save my pretend to be loan repayments to add to my contingency fund.  This way, I’m prepared for miscellaneous expenses or financial surprises that might come my way.  This will also give me more confidence that I can really afford to take out a mortgage.

9) Once I have everything in place, specially having adequate finances I will prepare myself to be ready to grab an opportunity when it comes.

10)  I will take action on my plan today!

POSTED IN: Buying a Property, Educational Tools

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