5 Mistakes You Do While Buying A Property

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

Are you geared up to search for a property in your town? Well! Buying a property is as an exciting work. Many of us get excited when we step out of the house for shopping. Similarly, shopping for a home is equally interesting (in fact, far more exciting) for the buyers who explore the real estate market for their desired home, especially, the ones buying a home for the first time. But many of the first time buyers end up making mistakes while buying a property that affects their property buying decision adversely. Hence, before you begin to find your home, you must avoid the committing the following 5 mistakes as a first home buyer:

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Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.
  1. Lack of clarity of affordability: Budgeting your expenses on home buying is important that the majority of the people lack in. If you have not yet decided your budget, then calculate your monthly expenses such as the expenditure on your vehicle, student education loans, credit card payments, household expenses in groceries, health insurance, school fee, etc. Also. Include the major expenses that occur once in a few months or yearly such as insurance premiums. Now, deduct these expenses from your total take away salary and the end result will be the amount that you can plan to spend on your new home investment.
  2. Unaccounted additional expenses: After you decide on to buying a home, followed by a home loan, and occupying your new house, you will surely have additional expenses that will be over your monthly payment of the loan. For example, you purchase one of the 2 bhk flats in Nashik, unlike when you were living in a rented home, now, you will be responsible to pay property taxes, getting home insurance done and the expenses for maintenance will also add up to the monthly expenses.
  3. Having a marginalized approach for home buying: As a first home buyer, acquiring more options for your requirements will widen the range of options and variety of property types that you can buy in the same budget. For example, the builders in Nashik have constructed a variety of residential projects that give the first flat buyers multiple options to choose from within a similar price range.
  4. Being Naive: The first time buyers who have set a budget for a home should look for a home where they can add more value to. Having a home where you have a scope to customize as per the requirements and trends in the market whenever needed will help build equity over a period of time.
  5. Compromising on unimportant aspects: You must be flexible with the features that you can avail in your new flat and should know on which all aspects you can compromise if need be. Hence, prioritizing your requirements and amenities you need in your flat are a must.
Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: September 3, 2017 — 3:03 pm
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