Buying a property is the largest single investment of your life. Maybe you saved a lot of your income just enough to buy your first home. This is the reason why investing in a real estate property involves not just a huge amount of money but also the sentimental attachment in acquiring your first home.
If you want to have a strong position for your investment, you need to make all things right. Read on the following tips to guide you on your purchase:
1.Get your Savings in Order
The global financial crisis started because banks allowed people to buy properties that they could not afford. Both the home buyers and the banks lose in result. This is the reason why you need to demonstrate your financial capacity to buy a home before you can buy a house. This gives your lender a safety net that you can pay what you owe them. In general, you need to pay 20% of the entire price of the property as down payment.
- Research and study the following key factors:
Your preferred location(s) – You want to find a place where the neighborhood is safe, clean and near important buildings;
Design and size of the house – the design feeds your aesthetic requirement but the size is really important because you want to have enough rooms to accommodate all members of your family and some occasional guests, if possible.
Potential growth of your preferred locations – Are there many new developments happening in the area? Do people want to live there? Locations with no growth potential may limit the price appreciation of the property.
You can’t always get what you want. The house that matches your price will not be the exact definition of your “dream house”. It is important that you know what are the features of the house that you can live without and what are those that are really essential.
In real estate, the asking price is not the last price. You can always negotiate with the price that you believe corresponds to the true value of the property. After doing the house inspection and researching on the neighborhood, position a price that will benefit your best interest.
5.Protect your property
Get a property insurance. Study what are covered and what are not. Shop around for the best insurance before settling for one.