|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.|
Well, what a question, just like, should I hire the devil himself? It could turn out to be the worst idea in the history of bad ideas, or maybe not. The pros and cons are plenty. A lot depends on how your typical Indian real estate agent turns out to be, especially taking into account the prevailing breed of Indian real estate agents.
The average neighbourhood property broker in India is the least preferred in the community. He is looked down uponas a blood sucking mosquito who sucks commission like blood for survival. But wait a minute before you totally count him out. He could turn out to be a potential match winner by providing you with an unbelievable property deal. Let us discuss two pros and two cons of hiring a real estate agent in India.
Many stalwarts of the real estate business will tell you that experience counts. Having a clear picture of the prevailing market trends and buyer needs comesonly with experience. An experienced agent knows how to negotiate and how to convince a buyer.
2. Social networking:
|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.|
By social networking I do not mean Face book or Twitter. The advantage your real estate agent carries with him is that he is a socialite. He mixes up with the community and knows exactly as to who is selling/buying a property. He knows the exact price a potential buyer/seller is demanding. He could provide you with a lucrative deal with local knowledge.
Greed is one of the seven vices according to the bible, and your real estate agent cannot remain untouched by it. He draws commission from both parties, the buyer as well as the seller. Driven by greed, he could charge you more than the industry standards. So you better watch out. Further, he could be biased towards the seller and compromise your interests, by taking an extra cut from the seller and fetching you a lower price.
2. Manipulation of property details:
A common practice employed by brokers. They tend to hide minute flaws and fine prints of property papers. It becomes your responsibility as a buyer to check out for these flaws, as your investment shall be at risk. Always remember that a broker or a real estate agent will never take any responsibility of a messed up deal after you have paid the money.
So, in conclusion it would be apt to say that if you can't do with a broker, you can't do without him either. The choice shall be yours in the end. So if you have to choose one, choose him wisely.
|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.|