In life and also in investing, we don’t always have control. Although we can create goals and take concrete steps to achieve them, live within our means, try to manage risk, this doesn’t always protect us. There are too many other unknowns: the government, the ever-changing tax code, other investors, and the market as a whole. It’s like acknowledging the futility of eating healthy and buckling up, since on your daily jog, even if you run facing traffic in your reflective vest, you risk getting run over by a drunk driver. So what can we do to protect ourselves and our future? Do we just leave everything to chance or are there reasonable steps that we can take to help our investments succeed?
Another factor in acquiring a property is the amenities that come with it. Take for example the housing. When you are choosing a housing property for your family, one of the factors that you consider is the safety of the community. You are not going to buy a property in a neighborhood where drug-related crimes are very rampant. Of course, you want a community where anybody, even your children, can play around freely without worrying that somebody would bully them, or worse, pressure them to get into crimes.
On the other hand, when interest rates go up these funds are not good golden visas – they are losers. The reason they are not a good place to invest money when interest rates are rising: the bonds in their portfolio pay an interest rate that is FIXED for the life of the investment. Rising rates make them less attractive and less valuable as an investment alternative. Hence, bond prices fall. And that’s what bond funds invest money in: bonds.
Generally when buying a property out of town, you normally will get more land attached to the property. In built up areas where space is limited, you will find many high rise structures that have been built to maximize the space. Although many of the town and city houses have identical plots of land, the actual property will vary. Large plots of land usually divide the houses when they are being constructed.
Don’t put all your eggs in one basket. Obvious advice, but many people fail to follow it. Many people think that they are on the right financial track by paying off the mortgage on their family home and then buying another property for investment purposes. Think about it! You have put all of your financial eggs in one asset basket – property. What happens if the property market collapses? Despite common thinking that this is a safe way to invest, the outcome is very risky. You have invested all of your well-earned money into only one area.
The first thing a lender will want to know is whether you have a deposit saved for this home. These days of tight markets and lending, you need to have some cash of your own to contribute towards the full amount. Often ten percent of the total value of the property is required by banks but it varies from bank to bank – some less, some more.
Make sure that the house you are buying is located in a convenient location. It should be near your work and near public places. You should be away from the centre of town. Make sure that you have a reliable and good estate agent so that you are never deceived. Moreover, your estate agent should be able to guide you along every step of the way. One more thing that you can do is that you can try to find a house for yourself on the internet or advertised in the local newspaper. Many real estate agents have their own websites and you can go there to see for yourself what kind of houses they specialize in and then make your choice of the right agent.