If you work for yourself as an entrepreneur, the path which you may take to owning a home, may be different to your friends, who work ordinary nine to five desk jobs. To discover how you can turn your dream of purchasing a home as an entrepreneur, simply continue reading.
Buying a Home as an Entrepreneur:
Consider buying your home out right:
You may want to invest all of your funds into your businesses, in order to create enough profit to be able to purchase yourself a home, without a mortgage. This ia a great idea as in order to be approved for a mortgage, you’ll have to convince your bank manager, that you have a steady, reliable form of income coming in each month. Unfortunately many bank managers are wary of individuals who list being an entrepreneur as their occupation. As entrepreneurs incomes aren’t as steady as individuals who get paid a yearly salary or a fixed hourly rate.
Provide your bank manager with evidence of your income:
If you do hope to get a home loan from your bank, plan ahead and turn up to your meeting with your bank manager with documentation to prove that you have a steady form of income. In order to convince your bank manager that you’ll have the means in order to pay your home loan repayments and interest. As an example, you may want to show your bank manager your take home profit, per month over the last year.
Talk to multiple bank managers:
If you do decide to take out a mortgage in order to pay for your home, it’s a great idea to talk to multiple bank mangers at different banks, in order to negotiate the best possible interest rate for your loan. As the lower your interest rate is, the less money that you’ll end paying your chosen bank in the long term.
Invest in property shares in order to save for your future home:
Alternatively, you may want to put aside money each month to invest in property shares of crowdfunded properties which you can partially own. As when the housing market increases the properties which you’ve invested in will also increase in value and you’ll make a profit. Better yet most platforms which allow individuals to invest into property shares also give each shareholder profit from rent each month. So if you’d like to increase your passive income, in order to save for a house, it’s well worth looking into a few crowdfunded property platforms for more information.
Consider purchasing a small home:
If you want to buy a home right now, you may want to consider purchasing a small inexpensive home which is structurally sound and is located in a great location. Due to the fact that the early you get onto the property ladder the better and as your businesses grow from strength to strength, you’ll be able to sell your property for a profit in order to purchase a bigger or flasher home.
So if you’re an entrepreneur who would love to own their own home, it pays to think outside of the box and to use some of the key solutions listed above in order to close the deal on your first home.