Getting married to the love of your life meant building and sharing everything together. This commitment involves your financial decisions, so it is important you discuss them with your partner. In this way, you can ensure that you grow your finances together and endure any setbacks, just like how you want your relationship to be.
Buying a condo is one of those biggest financial decisions that you and your partner could make. There are lots of reasons why a condo is a smart investment, and these reasons are especially inviting to a couple who are looking to grow their finances. However, ill-advised and one-sided decisions might turn your condo into a bad investment.
So to prevent this from happening, take note of these 18 smart real estate investment tips perfect for couples.
1. Decide on what kind of property you want to invest in.
A condo is not the only property you can invest in. There are other real estate properties like houses or apartments. Deciding which property you want to invest in is something you should discuss with your partner firsthand. It is actually one of the most important property investment tips for beginners because different properties mean different prices.
Make sure to discuss with your partner the reason why you both want this property. Take the time to list each property’s advantages and disadvantages, both for your present and future needs.
2. Research about prime real estate locations.
Location is a vital factor in helping you evaluate property prices. For one, your ideal property’s easy access to popular destinations might make its price a bit higher. But do not fret, because you can always opt to search for other prime real estate locations in the Philippines that may fit your budget.
Just like in deciding the kind of property you want, think about the pros and cons of your chosen location. In addition to this, a smart property investment advice to follow is to not limit yourself to one prospect location, because you might discover other on-the-rise locations that will benefit you more.
3. Take a look at interest rates and current values.
One of the real estate investing tips that you should always remember is to read about interest rates and current values. It could be the interest rates or current values of your chosen property, or that of your intended installment plan. Knowing the interest rate of your property can help you evaluate its value in the future, and also avoid paying a higher amount than what the property originally costs.
Whether it’s from a bank, a private loaning company, or from government agencies like PAG-IBIG, understanding the interest rate for housing loans is also vital in your property investment plans. Doing so will help you evaluate which housing loan you would like to best purchase your property with.
4. Consult with the experts.
Of course, you don’t have to do everything on your own. One of the surefire real estate investment tips to follow is to consult the experts, particularly property consultants. They can help you understand more about the amenities that come with your condo, and know more about the payment plans of their properties.
However, be wary of scammers who might be pretending to be a fellow investor or property consultant. Browse through the official website of your properties’ developer for their contact information, and only connect with their official social media pages.
5. Discuss your other financial goals.
Is real estate investment the only financial goal that you and your partner have? Chances are, you might also have other goals for your money such as health insurances, retirement plans, or education savings for your future kids. Knowing how you’ll manage these goals, along with your property investment plan, is one of the real estate investment tips that every couple should remember.
Doing this will help you and your partner decide if you can afford to include a property investment at the moment. Or if not, you can visualize how you could fit it into your list of goals.
6. Stick to what you can afford.
Imagine that you and your partner are already set on a particular condo. This property is convenient in terms of location, has great amenities, and fits your budget well. But since you are still looking for other properties in the same location, you found another condo that has even more luxurious amenities but is far beyond your budget. Which one would you choose?
Some might choose the other one with more amenities, because the cost justifies its perks. But a property investment advice that you should follow, not just in investment but in other financial purchases, is to stick to your budget. You’ll thank yourselves one day for not splurging on something when you can allot your money to somewhere else.
7. Keep an emergency fund.
Life is truly unpredictable. This perfectly sums up recent events that brought upon people’s lives, where millions of people lost their jobs and drained out of their savings and investments because of the pandemic. With this in mind, keeping an emergency fund is one of the real estate investment tips that you should bear in mind.
An emergency fund should be at least three-six months’ worth of expenses. Remember to build it up all the time, never let it go empty, and simply use it for important financial emergencies.
8. Find ways to educate yourself.
You do not have to be an A+ expert on real estate investment. But of course, venturing into property investment with zero knowledge is a risk in itself. So making an effort to educate yourself about investments is property investment advice that one should definitely take.
There are many ways to learn more about real estate investing. You can read about online articles, watch online videos, or even enroll in real estate webinars. Arm yourselves with knowledge so that you and your partner know how to yield gains from your property.
9. Build inspiration for your investment goal.
Real estate investing is hard if neither of you are motivated to dedicate time, money, and effort to it. You would find yourselves setting aside your property investment plans all the time or even give them up altogether. In this regard, finding real inspiration that works for you and your partner is one of the vital real estate investment tips to take note of.
Visualize your dream condo or property together, where you’ll place certain appliances or furniture. Or maybe even watch videos or tours of your ideal properties. Think of how your life will pan out once you already got your dream property. In this way, both you and your partner will have something to look forward to.
10. Evaluate your finances always.
Have you ever experienced situations where you wonder where all your money went? Or how fast your salary slips from your hand every payday? Though a small drawback as it may sound, unexplained expenses might cause problems for your financial goals, particularly in your investment property.
Make evaluating your expenses monthly as part of your list of real estate investing tips. In this way, you can gently remind yourself or your partner when your expenses might be going overboard, and you can help each other redirect it to your goals.
11. Ask your friends and family for advice.
Some of the best people to ask advice for the biggest decisions in your life are your closest family and friends. They may not dictate your life choices, but they can at least help you weigh your options, especially when it comes to real estate investing.
Who knows? You might even find yourselves surprised to know that some of your closest friends or relatives actually have their own property investments. They might even give you their own real estate investment tips!
12. Decide whether it’s a joint or individual investment.
While being married means building and sharing everything together, you have to realize that both you and your partner will still have personal goals. For example, you cannot force your spouse to enroll in a baking course as well. In the same way, you cannot obligate your partner to pay for an investment that he or she is not interested in or cannot even afford.
In this regard, you have to ask yourself and your partner: should we open a joint savings account or start investments together? Whether it’s savings or investments, talking about joint decisions is important property investment advice to consider. Don’t forget to take into account your partner’s thoughts and feelings on this, and really set aside time to talk about it.
13. Consider the risk factors.
Though real estate investment is low risk since it is a primary need, it is still not without risks. Situations may happen like projects might be halted because of some problems, just like the strict quarantine protocols in 2020 that ordered everyone to stay home. In situations like these, you cannot simply point fingers or let yourself complain endlessly.
For this reason, one of the real estate investment tips to keep in mind is to think of all the possible risk factors. Take a deep breath, and focus on what you can control or solve. Stay open on other things that can happen, as with any situation in life.
14. Practice through a savings account.
It’s an old and famous adage: practice makes perfect. And this popular adage is also a perfect property investment advice to listen to! Ready yourself and your partner for your investment commitment. Open a savings account for this purpose.
In this way, you can see how well you and your partner will be able to handle your finances once you purchase your property. It can help you point out your strengths and weaknesses in improving your financial plan as a whole.
15. Update your partner about your finances.
Whether you decide to go for a joint or individual property investment, it is only right to inform your spouse about your finances. Transparency matters so that you can both know how to help each other, should you encounter problems in your financial goals.
Never keep your partner in the dark. Think about their thoughts or feelings for the matter. More than the lost or gained money, your relationship with your spouse is also a lifetime investment that you should grow.
16. Assign other tasks for acquiring or managing your property.
If you already have your sights on a particular property, remember that you and your partner are a team in this investment. So, one of the real estate investment tips that you should do together is to distribute tasks in acquiring or managing your property.
Researching for properties, talking with the broker, or scheduling time to compute your expenses along with other responsibilities should be distributed equally. See to it that you and your partner come to agreement on certain tasks, and be ready to help each other should the tasks be too daunting for any of you.
17. Do not be afraid to set aside your financial goals.
This is one of the realistic real estate investing tips that you should remember. Sometimes, you may have to learn the art of letting go. You and your partner are not superheroes, and you can only take so much. So once you realize having a financial goal is not a good idea as of the moment, be ready to set aside your property investment plan.
But of course, you and your partner need to come back to this plan stronger. Start with what went wrong the first time you tried, and plan for a better way to pull through with your real estate investment.
18. Follow a realistic timeframe.
Success doesn’t happen overnight. This is true in many situations, especially in real estate investment. So one of the property investment advice that you should remember? Be patient and pick a realistic timeframe.
Talk to your spouse and agree on a certain timeframe to do tasks related to your real estate investment plan. It could be as simple as deciding on the kind of property in two months, or picking the possible prime locations for your property by December. Whatever the task is, make sure you allot enough time for you and your partner to decide on things.
Property investments are not easy. It takes a lot of time, money, and effort to grow, which is why couples who are venturing to real estate for the first time need to arm themselves with knowledge. Doing so will help you avoid making decisions that could not just hurt your investment, but your relationship as a couple as well. So if you want to make sure that you and your partner are equipped with the right knowledge to become real estate investors, do not hesitate to read more articles about investments here in DMCI Homes.