Planning your first real estate can be a very exciting thing. However, it can also land you into major financial pitfalls if you are not careful. One common mistake that most first time investors do is that they start looking for properties without having a budget plan in place. So here are 5 tips that can help you stay within your real estate budget.
Set Your Goals
As a first step, you should set two types of goals – long term goals and short term goals – with clear timelines. These goals should be relevant, attainable, and more specifically measurable.
And if you are setting time bound goals then it means a corrective action should also be defined in case you realize that you are not on the right track.
Closely Analyse Income
The operative word here is not salary but income. If you have more than one source of income then you should look at the bigger picture. This will help you determine your borrowing capacity. Based on this, you will get an idea of what kind of property you can afford.
Hire a Realtor
Once you know what kind of property you can afford hire a professional realtor to help you find the right property. They will be better equipped to negotiate the prices and get you a deal that is lower than your listed price. Let them know what is your absolute cut off and they will show you properties accordingly.
Stay Prepare for Other Expenses
If you believe that paying for the property is the only cost that you are going to incur then you are being naïve. There are going to be expenses related to legal paperwork, realtor’s commission, and maybe even homeowners’ fund. You have to budget for these as well.