POSTED BY June 4, 2014 10:13 am COMMENTS (2)ON
A buyer already has a property for which s/he is paying 1/3 of her/his monthly income as EMI. Also, another 1/3 goes for house expense, and the other 1/3 goes for investment. Buyer’s spouse is also working professional (spouse’s income goes ONLY to investment), and the couple wants to buy a 2nd property now.
What are the factors to be considered to buy the 2nd property? Can you provide some logical and calculative decision criteria?
1. Real estate investment in tangible growth market?
2. Long term plan to have multiple properties in metro city? Hence, ROI is high.
3. Having multiple real estate properties in early years of professional life.
1. Expense to Income ratio?
2. Property ROI in upcoming years?
3. Property rental income opportunity?
4. Risk factors – in case the expense to income ratio is marginally overloaded?