5 ways to snap up a property at below market value

  • 📰 fmtoday
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 72%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

There is never a bad time to buy property, but there are times that really good deals can be had with a little extra knowledge. FMTNews FMTLifestyle

Is this a good time to invest in real estate? Or is it better to wait for the economy to recover?

The auction market refers to completed properties being auctioned off by licensed auctioneers. They are typically offered at reserve prices below market value. Here are two ways to calculate the maximum price of a property an individual can afford based on their current financial position.This is a ballpark figure of the amount of initial capital outlay needed to buy a property and make it lettable to potential tenants.

Start by listing out all debt repayments – say, RM1,200 for a car loan and RM300 in student loans – amounting to RM1,500. Calculate the current DSR by comparing RM1,500 with monthly income, say RM7,500, which is 20%.To keep the DSR at 40%, the maximum loan eligibility for a property= x monthly income x the Rule of 200= x RM7,500 x 200=20% x RM7,500 x 200=RM300,000.

To be extra conservative about it, one can choose the lower of the two price points. Or, one can go with properties priced between RM300,000 and RM400,000.3. Stick with the familiar

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines