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).
- 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).