|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.|
Every time you hear about a real estate purchase, you frequently hear the phrase “closing the deal.” Closing refers to the process of signing the final documents and taking possession of the property. However, this golden moment arrives after a series of steps from the time your offer is accepted till the actual closing of the deal.
Employ an Escrow: There are several items to be taken care of before the final closing. It is a smart idea to employ a neutral third party to take care of all the transactions, including the money and documents related to the deal. A third party intervention ensures all parties are treated fairly and the financial amounts offered and accepted are also handled professionally and legally. Professional Escrow companies are the best choice for this.
Title: A title search and title insurance is essential for the buyer's security while investing in Atlanta Investment Property. A title officer performs a title search and ensures whether the title is free from any unnecessary complications.
Employing an Attorney: No matter how well-educated you are, it may be challenging to understand the legal documents clearly. Thus, it is better to employ a professional legal attorney to look into the closing documents and rule out the possibilities of any future problems.
|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.|
Home Evaluation: It is not uncommon to find the Atlanta Investment property in a distressed condition post purchase. Investors may find themselves shelling out a large amount of money on repairs and rehab. Therefore, it is best to inspect the property before closing. On finding any issues, the buyer still has a choice to back out, negotiate or ask the seller to fix the problems.
Check for Pests: Pests are certainly not welcome by any buyers. Specialists can inspect the home for pests, which may not be visible to the buyer's eye such as fire ant or termite infestations.
Finalize the Interest Rate: Interest rates fluctuate multiple times in a day. Lock the best interest rate with your lender. Interest rate also depends on the type of loan, geographic region and credit score.
Paying Escrow: A common practice is to fund the Escrow prior to the purchase. This “earnest money” only indicates the buyer's seriousness to the seller. Else, why would the seller remove his property from the market because you say you will buy it? This earnest money will act as compensation to the other party if the buyer or seller back out. If they go ahead with the deal, this money is included in the down payment made to the seller. The closing costs are paid to the Escrow separately either by the buyer or seller.
Final Step: It is a smart idea to walk through the property once again before signing the final closing papers.
Final Signing: The closing documents run close to 100 pages. It may be challenging to read. However, read it carefully to avoid any mistakes. Particularly, see if the interest rate mentioned is right and compare the closing costs with what was discussed in the beginning. Check for any enhancement in fees before signing.The closing process is long. However, to avoid any further issues, it is best to wait. Getting restless will only work against both the parties.
|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.|