Property Investment Planning: Learn 4 Major Causes and Its Solution with DDP Property
DDP Property helps you to plan the long-term investment and brings benefits for you. Although property investment can give you a higher risk, it can give you a higher return too. Yet, many people failed on it because of the difficult situations they faced.
There are many reasons behind their failure. Let us learn the causes and how to overcome these problems.
Avoid purchasing “off the plan”
Purchasing something off the plan defines as buying the unbuild property. Some people consider this type of investment because of its enticing reason in the beginning. It makes you think about owning the brand-new property once it is ready.
Unfortunately, in the property investment guide, this way of investment does not guarantee the quality or the value of your final property. The developers include the overvalue on this unbuild property.
Take, for example, buying a house off the plan that costs $550,000. Then, once the house is built, its value decreasing to $400,000. So, you will lose $150,000 when you resell this property.
Jobless and Out
In the beginning, you become the proud owner by investing in the property. You purchase it before you lose the job. This thing makes you unable to pay the loan.
Jobless can cause more debt on your property investment. It forces you to apply for a loan extension. Of course, it will cost you more money for the unexpected fees.
DDP Property suggests you always keep your mortgage repayments for three months. You have to do it for each investment property that you have. Through this, you will have cash in case you are in an emergency situation.
Avoid Exit Fee
A low interest rate can attract people to choose bank loans with fixed rates. Investors prefer this option because of the fixed amount of payable rate every month. Unfortunately, they do not consider deeper with the penalties if they decide on an early exit.
Once you are in a difficult situation, you will be forced to sell your property. This case happens during your fixed-rate period and results in thousands of dollars penalties on exit fees.
Therefore, the property investment guide suggests you take careful consideration before purchasing the properties. Through this, you can avoid selling your investment once you are in a disastrous situation.
Renovating is one of the fastest ways to add more value to your property. However, you should choose the company carefully to avoid unexpected incidents. Consider many aspects before you decide to use their service.
Check and learn about the developer’s background and current credentials. It includes the insurance policies provided and any other works that they currently completed.
Let say the construction crew fell and severe a serious injury while he works on your site. As the developer covers his insurance, you will not be the one who is responsible for this case.
Company insurance is essential and beneficial for you. Once there is an accident that happens, you will not be charged with any lawsuit. DDP Property recommends you act on the long-term investment and consider it carefully.