Things to Consider When Purchasing Real Estate

The first step to buying real estate property is determining if it’s the right time to do so. Whether you’re a first-time homebuyer or a seasoned investor, this guide will walk you through some of the most important factors and tips.

Location of the Property

It's important to analyze how the area you intend to buy your property is expected to develop over the investment period.

One way to gather information regarding the prospects of the property’s vicinity is to contact the town hall or other public agencies in charge of urban planning. This will give you access to long-term area planning and help you decide if investing in that area is a good idea.   

Debt-To-Income-Ratio

A mortgage lender will use the debt-to-income ratio to figure out if you're financially stable to make the monthly payments on the property. Real estate experts recommend homebuyers not overextend themselves, so you must buy only what you can afford.  

It's important to be honest with yourself and calculate how you will pay the mortgage installments in the future. No one understands your finances better than you do. According to the Federal Housing Association, the desirable debt-to-income ratio should be 43%.

Duration of Stay

Though homebuyers often overlook this factor, your duration of stay in the home is a major source of concern. Since each market varies, it will require a subsequent analysis to determine whether buying is the right choice. So you can predict if the amount of time you intend to spend in the house permits the purchase.

New Construction vs. Existing Property

New construction gives you attractive pricing, modern amenities, and the option to customize. On the other hand, existing properties offer convenience, quick access, established improvements, and lower costs.

When deciding between new construction or existing property, do your research on the past projects and the company's reputation for new investments. You must also review recent surveys and appraisal reports for existing properties.   

Get the Best Real Estate Financing Options

Insula Capital Group is an investment company based in New York. Their loan options offer a variety of rental properties loan programs, fix and flip financing, new construction loan programs, and multifamily fixed used loans. 

Contact them for more details.

 

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