You’re here today because you’ve decided to buy a property for investment purposes. Sure, you’ve already purchased the house you live in right now and call home. But, you want to start building a property portfolio and eventually earn a living from its profits.
The thing is, houses, apartments, and other residential properties cost money. Those that yield the best returns on investment often cost a lot of money compared with less desirable examples.
You’ve probably decided that you want to invest in one of the best residential properties in your area. Plus, you may also have browsed a lot of real estate websites and concluded that there’s no point wasting your time on “low budget” properties.
The only trouble is, you’re unsure how to pay for a premium property! With that in mind, check out these ideas to help you buy your first investment property and start building your portfolio:
Find Ways To Increase Your Downpayment
You likely want to get a mortgage on the property you wish to buy. After all, few people have the funds available to purchase outright a house or any other type of abode. If you’ve got your sights set on a premium property, you might not have the cash for the downpayment.
That’s why it makes sense to look at ways of increasing your downpayment. For example, you could consider getting a higher-paying job or perhaps a second one to increase your disposable income.
Another idea might be to sell off some assets if you’ve got some valuable items that would attract high purchase prices. You could always replace those items at a later stage once you’ve progressed with your real estate investment plans.
Purchase With Other People
If you’re aiming straight for the stars and want to buy an investment property that has a value worth more than a decade of what you’d earn, you can’t buy it alone. Not unless you win the lottery jackpot, of course!
With that in mind, you should put serious thought into buying the investment property of your dreams with other people. When there’s a group of people purchasing the same investment property, each person’s share of the deal is both affordable and manageable.
The only downside, of course, is that you won’t fully own the property yourself. However, keep in mind that it can be a great way to receive a passive income from rental payments, for instance, and you can save your share of the profit to buy another property outright.
Who should you ask to invest with you? The answer is, it depends. If you have relatives with a high net worth, they might be interested in your property investment idea.
Otherwise, you’ll need to seek outside investment. There are groups of people – investment groups – and companies that specialize in property investments and will be happy to work on a deal with you.
The above ideas will give you inspiration on how you can afford what is seemingly an unaffordable property to build your portfolio.