Many say that investing in real estate is no longer the best investment option due to the pandemic, but is it true that buying a house to make an investment is no longer profitable?
Let’s try to understand this fundamental chapter together. We must distinguish between housing and speculative investments, especially when we talk about a family economy with children, which must be distinguished from an economy of a family formed by a single person.
The First Thing to Consider
First of all, one thing needs to be clarified. The pandemic is not about to end completely and it will take a while before everything returns completely to the way it was before.
Buying a house is a heavy commitment, which often implies a fixed job for the signing of a mortgage, which can be up to twenty years, or a considerable amount of money, notary deeds, expenses such as condominium expenses, taxes as owners.
In addition to these factors, we must also take into account the trend of the real estate market of this period. This can include the specific place of the house needed, the number of square meters and rooms we need, whether we want a house in a big city, where the price of houses is rising like Singapore, or in small villages that are depopulating, leading to houses at bargain prices.
If we buy a house that is already inhabited, we will have to make sure of its condition, which includes checking when it was built and what criteria were followed.
Start investing in real estate: Things to Evaluate
Buying a house to live in
- Before buying a house, even if you don’t want to invest in real estate, but you simply want to go and stay there, you need to know the number of people who will have to live there. When we speak of “family” we usually mean a family unit made up of father, mother and children.
- Take note of Singapore-based family taxes
- If you have a large family with children, or perhaps an extended family, it is certainly worth considering a real estate investment, or otherwise not.
Buying a house is not like buying a stock. Once we buy a gold bar or a share, we just have to keep it in a bank, pay taxes once a year (which can be paid directly by the lender) and that’s it. When you become the owner of a property, you have a whole series of obligations that go beyond a simple financial investment.
Financial speculation, source of income, or house for dwelling?
Another important question to be resolved is the purpose of which one makes the investment.
Invest in real estate while saving money
In theory, you can invest in real estate even if you don’t have money, or, at least, if you don’t have much. The most used and known method is to take out a mortgage for the first home, then rent some rooms or rent it in parts. It must be said that to take out a mortgage now you need to have a starting capital.
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