An Essential Guide to Buying Real Estate for Newlyweds
Congratulations! Now that you’ve tied the knot, it is essential that you start planning ahead. You and your spouse are now faced with the exciting - although admittedly daunting - task of setting a solid financial future together. This includes deciding on your fist real estate investment.
Times have changed. What was common practice during our grandparent’s time may no longer hold so much weight today. To wit: deciding not to invest in an urban area. Condos for sale in CBD are a good investment - particularly if they are projects from well-respected real estate groups. Not only are you strengthening your financial portfolio with excellent real estate choices, you are choosing projects that only have the potential to increase in market value over time. Several real estate developments have projects that allow young newlyweds to still work in the metro while creating a beautiful life together.
The choice to invest in real estate is simpler as a married couple. Government incentives give newlyweds more ability to invest and take out loans. Still, newlyweds are encouraged to ask themselves these questions before making a real estate decision.
What Are Our Long-Term Plans?
Future goals affect what type of living arrangement is best for you. If both of you foresee the next ten years living in emerging CBD's, it would be wise to invest in some apartments near to newly launched estates or townships. Similarly, condos or apartments on premier business districts would be preferred when both are working in the area. Knowing your long-term plans will also help you determine what kind of loan you can get. Bank house loans are the most popular option; with more leeway given to younger applicants.
Another consideration: if you are planning to live with your in-laws, you can consider your real estate investment as a revenue-generating asset. Many newlyweds use their first real estate purchase to collect rent and act as passive income. This is a viable choice among newlyweds who have set up their own living accommodations.
Do We Want Kids?
Real estate professionals encourage newlyweds to consider the possibility of children in the future. Cost of living has gone up and will continue to do so. Making an investment now for a larger project is a wise choice, even if that means initially paying more.
Newlyweds should calculate their expenses (including loans) and then add a safe 30 percent more for each child. This ensures that couples don’t face themselves with uneccessary financial stress in the future. It is also good to anticipate what your salary will be in the future.
What are our Back-Up Plans?
Every marriage will have its ups and downs. The most common reason for marital argument is money. It is not a nice idea to think about, but couples should consider financial back-up plans. Speak with your real estate professional about the types of home ownership available when purchasing a property. A house and lot in Nuvali, for example, is usually listed under one name. If the owner of the property passes away, the asset is typically passed on to the surviving spouse.
Great back-up plans are based on a thorough examination of your budget as a couple. Married couples should have ultimate transparency with each other. Before you contact a real estate professional, determine how much you can afford and what you earn every month.