Is Your Property On Asset?

A guide to purchasing your first home

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Purchasing your first home is a remarkable milestone in one’s relationship. Due to its cost and investment purchase, your first home, or property in general, is quite unlike any other purchase.

Purchasing a property is, unfortunately, not as straightforward as we may wish it to be. There are several considerations to take into account before making your decision. These include the location of the property, its surrounding communities, budget, and of course, its potential as a valuable asset.

What is an asset?

A property is considered an asset when it is capable of producing positive cash flow. This happens with the property’s appreciation over time that results in an increase in its value.

However, it is challenging to determine the asset potential of a property. More often than not, one can only tell its potential when you opt to put your property up for sale – a scenario that usually takes place approximately five to ten years later. Thus, it is important to look at the big picture before making a property purchase.