BUYING  PROPERTY

When it comes to buying property, or most anything else, there is a decision process that is normally gone through. Consequently, to arrive at a decision there are always a number of criteria which must be considered. Quite often the criteria boundaries become confused when buying a property to live in or for investment purposes. The following list will give you some pointers as to where the major criteria should be placed.

To Live In

• Put down a large sum of money. (deposit)

• Borrow as little as possible-Bad debt:-(you pay tax before you pay off the interest).

• Get the lowest Principal and Interest loan available. Don’t be afraid to shop around.

• When possible, pay extra off the principal to reduce your home mortgage sooner.

• Use your own personal preferences and taste to select the style of your home (emotions).

• Buy a property in an area that you like and meets your personal requirements (emotions).

For Investment

• Usually no deposit by using the equity in your home.

• Borrow as much as you can, include all set up charges-Good debt:- (the taxman could pay you before you pay the bank).

• Get an investment loan. Fixed interest only for the first few years. Use a Mortgage Broker for the best options.

• Use other people’s money. Rental income and legitimate tax credits to pay the investment loan.

• Use common sense, research and capital growth forecasts to choose the property (eliminate the emotions).

• Buy a property in an area of predicted high population and capital growth and good rental demand(eliminate emotions).