REAL ESTATE Getting into the market

[supraman]

Hi there

So iv always been keen to get into residential and commerical property investing , but recently here our market has been red hot and prices through the roof , also we have had stedily increasing interest rates. So heres the question. Where to go from here? Wait a bit to see if the market cools even more? Wait until the mortgage rates start to come down a bit? ( oh and to make it that much harder i would only be able to put a small deposit at best.

Thanks

 

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[andviv]

Well, first of all, welcome to the forum. I think I understand the situation you are experiencing right now, so I want to tell you that yes, it is possible, and you can do it if you work hard enough in making things happen.

I am not so sure how the mortgage market works in your country, so my first advice would be to go to your bank and ask them for what they have to offer for mortgages and what you could qualify for. Try understanding what credit is available for you so you can get an idea of what you can accomplish.

After that, start talking to real estate agents to get a better sense of the market. My recommendation is that you specialize in one particular area so you become an expert and have higher chances of success.

In any case, do not "wait". Start your education process (it is going to take a lot of time, I promise) and keep researching. If you are not doing your homework then when will you know if a house for sale is really a good deal or not?

 

[supraman]

Thanks for the welcome.

Well im certainly not affraid of a bit of hard work thats for sure. Thats a great starting point thanks.

 

[MrDoctor]

Don't do it.

You'll thank me later.

 

[supraman]

fancy expanding on why?

 

[MrDoctor]

fancy expanding on why?

PM me please.

 

[AroundTheWorld]

Hi there

So iv always been keen to get into residential and commerical property investing , but recently here our market has been red hot and prices through the roof , also we have had stedily increasing interest rates. So heres the question. Where to go from here? Wait a bit to see if the market cools even more? Wait until the mortgage rates start to come down a bit? ( oh and to make it that much harder i would only be able to put a small deposit at best.

Thanks

The first thing you need to do when you are looking at a deal is decide what kind of deal it is....

CASHFLOW
or
CAPITAL GAIN

You are less likely to find a capital gain deal if you are at the top of a 'hot' market. If you are buying to "flip" make sure you have a plan b. What if the market turns and you are left with a house that is worth 50k less than you paid? Can you still rent it out for a break even/positive cashflow deal?

If you are able to find a deal that will cashflow, even at these prices.... then look into the future here too.... what are you expecting the rental market to do?

As RK says, a good real estate investment is one that will do well even in a down market.

 

[biophase]

PM me please.

Feel free to explain it here. That's what these forums are for.