Instead of borrowing money from a bank to buy a property, you should consider borrowing money from friends or family. Financing options like this are of course there are advantages and disadvantages that must be considered carefully. Aside from that, you can also learn more about real estate investment from Daniel Ballerini.
The advantage is you don't have to pay a loan with a high-interest expense, while the loss is that your relationship can be damaged with friends and family when you can't pay the debt on time.
Prepare yourself to rent the house
The thing that needs to be considered in this phase is to start determining how much rent will be pegged every month.
Rental costs are set based on the facilities you provide to the tenant, the location of the property owned, and so on.
Do not let the rental fee that you set is not able to cover the costs that need to be incurred for a property.
Also, apply some rules for home tenants so that you can ask them to account for errors that are violated.
Prepare Insurance for Homes Owned
There are 3 ways to manage existing risks, namely avoiding risks, transferring risks to others, or minimizing those risks.
Insurance is one of the best ways to transfer risk to third parties when there is a problem with your property.
Some risks that may occur are fires, natural disasters such as landslides and earthquakes, and others.
With insurance, of course, this can make it more comfortable and calm when owning property. It is because you have a claim when a disaster or an undesired problem occurs on the property.
By using several steps and the steps above, we hope you can determine the type of house that is most profitable to have.
Do not let the house purchased is not in demand by the tenants and the price increase is very low in the future.