It’s easy to get excited about being a real estate investor. We have all heard the success stories and how easy it is to get in on the action. We are told that it’s as easy as purchasing a property, renting it out, and collecting the checks. In reality there is much more you need to know.
Is it affordable?
Along with location, affordability is the most significant determining factor in buying a property. It’s not much use mulling over properties that are priced beyond your ability to pay back a bank loan. Banks will need to see evidence of your capacity to pay a deposit on the house, plus extra finances to cover legal costs and stamp duty. This requires reasonably substantial savings even before you can begin your chosen calling as a real estate tycoon.