You do not have to be rich to be able to buy a house; you just need to be financially practical. Stick within your budget and buy a property that falls within your income bracket. Even if you are sure that you will be earning more in the coming years, your expenses might probably increase as you go on in life due to new circumstances. Besides, expenses do not stop after you have moved in; in fact, it’s just starting since you need to buy home essentials and pay other house maintenance entailed.
As an investor, this is probably the most important part of investing in real estate. You need to know your numbers. If you are buying a house to fix and sell, you need to know your lowest acquisition cost, repair cost, maintenance (landscaping, utilities, taxes, insurance, etc) and finally your expected sales price. If your goal is to fix and rent cash flow properties, you also need to know your expected rental amount and account for additional tenant repairs, vacancies, commissions, etc. Knowing all your numbers is crucial to become a true real estate investor.[/fusion_text]
Quick tips when buying their first property (Part 3)