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Let Your Purpose Drive Your Purchase!

Let Your Purpose Drive Your Purchase!
by Gretchen Ellinger

Clearly defining the purpose of your property purchase will help to determine which types of properties, and even which neighborhoods, to consider. Some people get lucky; they fall in love with a property, buy it, and later find that it exactly meets their needs. Many others “wish they had” just known, thought, or planned prior to making a purchase.

Investing? The property purchased strictly as an investment must be priced low enough, have great terms of purchase, or have ongoing demonstrated revenue value, such as rental history, and have potential for significant appreciation, in order to make sense from the standpoint of investment. Your investment strategy must be realistically measured in terms of the potential gain in order to determine whether a proposed property is the right purchase.

Personal enjoyment? If you don’t plan to sell, and have no expectation of the property other than to use and enjoy it, shopping is easier—establish your price range, pick your favorite neighborhood, and when you find the right property, go ahead . . . fall in love! This kind of a purchase doesn’t have to make sense!

A bit of both? You might want an investment property that you can enjoy yourself from time to time. Properties with good rental potential, bought at great prices, work well for this purpose. Rental income helps to offset the cost, and eventually appreciation validates the investment value. Or you may be someone who is finally in a position to fulfill your dream of living in Northwest Mexico, but you want to earn a little in order to help it work. Your purchase may be a bit more challenging; depending upon your business plan, you may need a home that doubles as a business place with living quarters, or you may need both residential and commercial properties. You will probably need to go back to clearly defining your business plan, so that you know which types of properties in which areas you will want to consider.

Regardless of the type of property purchase you are considering, opportunities abound! Let your purpose drive your purchase, and buy now while property prices are at historic lows!

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