Investing in real estate – Properties for Sale in Sri Lanka
If you?ve been looking for properties for sale in Sri Lanka, you are probably thinking of building equity in real estate. The sure-fire way to build equity fast is to use out-of-pocket money on property investment. But that is a luxury only a few can afford. Fortunately, there are other ways to find the cash to invest in real estate. Here is a look at various methods of real estate financing for properties in Sri Lanka.
Creating a partnership agreement to finance real estate investment is a popular method. You and your partner will have a designated percentage of the property and a percentage of the profits that you make. Before you go ahead with a partnership make sure that it is the right fit for you. Here is a check list to help you decide.
- First of all make sure that you and your potential partner would be better off with each other
- Pick someone who complements your skills
- Set well defined roles and expectations from each other
- Pay attention to the long-term goals of each partner
- Do a self-evaluation
Hard money loans
Hard money loans are backed by the property?s value. You?ll find out that if you use this method, you?ll pay a higher interest rate than those who use other types of property investment financing. Accordingly, this method is used for short-term investments like fix-and-flips (buying a house that needs renovation and selling it after fixing it at a profit)
This is the classic property investment financing method. Real estate mortgage requirements are different from mortgages obtained for properties that you occupy. The down payment will be higher. Whether you qualify for a real estate mortgage depends on your financial status. You should be able to make the required monthly payment without difficulty. Before you decide to go for a mortgage, determine if the property or properties that you plan to buy will cover the mortgage payment.