Charles Kirkland: When Should You Start Investing In Real Estate?
While there’s no one-size-fits-all answer to questions as to the right time to invest in property, people who start investing in their 20s and 30s tend to have the best results because they don’t have as many responsibilities.
However, if you’re thinking about buying your first home, it’s still worth considering how much money you have saved up and whether or not your credit score would allow you to get a loan for such a large purchase. For that matter, Charles Kirkland will discuss some factors to determine when you should start investing in real estate.
When You’ve Saved Enough Money For Investment
The amount of money you’ll need to invest in real estate depends on what kind of property you want to buy. You should be able to afford the down payment, closing costs, and other expenses associated with buying a home.
The general rule here is that if your monthly rent is higher than 30% of your income (including utilities), then it’s time to consider buying a property. Also, keep in mind that there are some cities where homes are more expensive than others, and thus require more saved up before making an offer on an apartment or house.
When You Have A Good Credit Score
Charles Kirkland Your credit score is calculated based on the information in your credit report, which includes how much money you owe (your outstanding balances), how long it’s been since you last missed or paid late on any payments, how many times this has happened in a given period, and how much new debt you’ve taken on recently compared to what was previously reported by lenders (what’s known as “credit utilization”).
A good score means that lenders will instantly approve loans, resulting in lower interest rates and monthly payments for borrowers. You’ll also find it easier to get financing for real estate investments if you have strong financials and good credit history.