ARE YOU READY TO OWN A HOUSE YET

Owning a house be it bungalow, apartment, mansion… It is almost every persons dream. I also dream of owning one soon. With an owner occupied house, fears about the landlord knocking on your door fly away. Just before you get your hopes high, have thought about what that house is doing to you. Assets should generate a positive cash flow or else it is a cash cow. Before investing in a house, there are things you should know.

When you invest in an asset, you should be sure that the asset is generating more revenue than it is taking away from you. If you have not accumulated that much amount of income that can sustain enough to live comfortably off your employer, I strongly advice that you halt that thought. I will give a much wiser thought for your consideration.

If you take a loan to build your own house, there are things you should know. Your income will reduce by the amount you are repaying your loan per month. At the same time, your house will come with its own set of bills. You will need to maintain the house yourself. At the same time the bills will come your way. If your former landlord paid for your TV connection and internet connections, these will be your bills to cover. In some residences, you will be required to pay some homeowners association fee for houses for some services like garbage collection and security. You also need to consider whether you will still want to live in there in like five years from now.

As a wise investor you need to think of your house as an investment that you are making. If you chose to live in it, you fore go the amount of income that you can derive from it. Real estate investment is important for you. Take that bank construction loan or your savings and invest in a commercial or residential development. You will still afford to pay your landlord and the loan if you took one. With your development complete in like a year, it will start repaying your loan and your landlord at the same time. Now you have your salary, and what is left of the income from the house.

Now that sounds like a nice investment plan. You can keep on doing this for as long as you feel that you are making enough to quit your job to manage your property comfortably. At this time you are ready to own the dream house, not just a shelter. Your income streams from other properties will cater for all the bills that come with owning that expensive house in an expensive neighborhood.