Real estate Real estate investment:Is the idea of loan to purchase land or house advisable?

[General01]

At times, the price of land or house could be beyond our financial reach as at the point the owner wants to sell

This can be frustrating and very bad for the intending buyer
One would begin to look for options to raise the required money in other to purchase that land or house

As an interested buyer, is the idea of collecting loan to purchase a land or house advisable?
I would love to read your opinion on this subject
Thanks in advance

 

[Kendy]

Personally, I would not suggest or recommend taking of loans to purchase a real estate investment no matter how low the interest rate might be. The only reason I might opt for loan in purchasing a real estate investment is if I am using the property or land for commercial purposes but if it's just as a source of shelter, then I would opt for other alternatives or wait till I have saved enough. Taking a loans to purchase properties will actually be pressurizing to me in the short or long run especially if I'm not doing something substantial to repay the loan in time.

Albeit, there are some cases where one can opt for loans to invest in properties and the risk factor is not really high when it comes to real estate especially if you opt for urban areas or settlements where it is not prone to insecurity or inter-ethnic clashes or crisis and also it has less risk factors if purchased in urban settlements because it is not really prone to hazardous effects like flooding. The point is, if you have no alternative, then you can opt for the loan but you should be strategic about where you purchase the property so you can make double increment to repay the loan as at when due.

 

[Jasz]

When it comes to real estate investment, especially if you're thinking of taking out a loan to make the purchase, there are a lot of factors to consider. For example, you need to make sure that what you consider a "good deal" is actually going to see some good returns once it's sold. That means you need to look at things like past performance and demand for the area. Another thing you'll want to consider is exactly how much work you plan on doing yourself, and how much money you're willing to spend on repairs when they come up. Plus, there's always the option of renting out the house or land if you decide it's not worth keeping around.

To determine whether or not to purchase a land or property is right for you, ask yourself these questions: What do I expect my return will be? How much work am I willing to put into the property? Will I be able to rent it out? Is this a good opportunity? If none of these questions are difficult for you to answer in a positive way, then buying land or property might be a good idea for your real estate portfolio.