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Although mortgage rates rose slightly this year, they remain at historical lows, so real estate is still a smart investment. That’s especially true in Nashville, which saw large increases in real estate pricing with no sign of slowing down. Considering consumers are freely spending and investing, it’s safe to say that this year is a smart year to buy and hold onto real estate before the fed raises interest rates to match the thriving economy.
But my real estate picks would be impossible if I had no money set aside for the purchase. And with the amount of debt I was carrying, I couldn’t have jumped in the market when I did by myself. But if I can do it, you can too. All it takes is a hard look at your finances and a little help clearing your debt.
Looking at Your Budget
Even though the economy is starting to boom, that doesn’t mean you don’t need a budget. Tracking your income and expenses ensures that you’re making smart choices with the funds you’re bringing in. Not only that, but it’s the only way to gather all the extra money you might spend on non-essentials and use it for a solid investment in real estate.
To start your budget, write down your monthly income and expenses, then subtract the two. If the difference is negative, you need to increase your income, decrease your costs, or both. Since the United States hasn’t seen unemployment this low in 10 years, it shouldn’t be too hard for you to increase your income. But the quickest way to create a gap between your income and obligations is to decrease or eliminate some expenses and pay off your debts.
Credit Cards Hold You Back
The second thing I did before heading to Nashville was pay down my credit card debt. Credit cards might be necessary during hard times, but carrying that debt means you’ll qualify for a lesser mortgage amount. It also means banks will see you as a higher credit risk because you have other obligations you need to pay. If you don’t have the funds to eliminate your credit card bills in full, you could do what I did — consolidate.
Brice Capital will look at your eligible debt and give you the opportunity to roll it all into a debt consolidation loan. That will leave you with only one monthly payment and free up funds you could use to pay your debt down quicker, getting you ready to approach the banks for a mortgage.
Consider the Trends Before You Buy
Hopping into real estate is not a decision you want to take lightly, but if you want to diversify your investments and increase your overall wealth, it’s worth considering. And by looking at the real estate market trends in Nashville and other places in the country, you want to get in while prices are on the rise. That way, you can catch the investment wave and watch your home equity grow with the trend.
Since timing is the key to investing, if you want success, you have to arrange your finances now and look for real estate that fits your investment goals.
Grow Your Holdings and Stay on Track
You never know what the future financial world will bring, and you have no control over the market, but you can take advantage of the opportunities while they’re here. While investing in the real estate market is hot right now, that might not always be the case, and it’s essential to diversify your holdings. Use the opportunity you can get with debt consolidation to take your money and place it in multiple areas of the market. So, when real estate takes a dip as it typically does, your balanced portfolio will be ready to take the hit.