Buying a property is one of the largest investments you will ever make and one of the most complex too. So, shouldn’t it be a wise one? It surely does but the scenario is actually the opposite most often. According to a recent data, 33% of first home buyers usually wish they had searched more before purchasing their property while 22% regret the area in which they bought.
So, you must take a step back, and make sure it’s a well-researched, logical, and considered decision. Keeping that in mind, have a look at the few things you must consider before planning to purchase a property.
Plan Your Budget and Consider the Types of Property You Can Afford
Planning your budget is the first and foremost thing which must be considered when planning to purchase a property. Before you even start looking, make sure you know how much you can afford and the maximum you’re willing to spend each month. Home loan repayments plus the associated costs of owning a home impact your budget far more than rental payments do. So, plan your budget well and then consider the type of property which fits in.
Research the Local Area
There’s no such thing as being too informed when it comes to buying a property. However, it is always better than making an impulsive buying decision. So, it is advisable to take your time to know and identify the area surrounding your potential house. You may talk to estate agents and even your mortgage broker to understand what’s going on in the local area.
Involve Only Experienced Professionals
With such a big investment at your plate, make sure to involve only experienced professionals. Hire the most thorough, licensed home inspector who is able to pinpoint any issues that could potentially end up becoming costly repairs and an added burden. In addition, work with an experienced mortgage broker to ensure that your finances are aligned to meet your property requirements. Connect with a financial advisor to gain knowledge about the realities of home ownership. Also, make sure that your lawyer is not representing your seller to avoid any conflicts.
Get a Detailed Building Report
Conduct a building inspection irrespective of whether the building is newly constructed or is a year old. Building inspection for all purchases, in fact, all units are recommended. An experienced professional who is responsible for conducting inspection will detect issues which can easily surpass the normal human eyes. The detailed report will comprise everything relating to the structure inside out, pest inspection, and other such issues. A building inspector can also highlight issues which could arise in the future from poor design, problems which have just started and will turn out to be a costly affair if not treated well in time.
Check for Any Environmental Hazards
Checking for any environmental hazards that could affect the property in any way is a mandate. Known hazards can strongly impact insurances and values. For instance, if your property is a known flood zone, it is likely that your insurance might not cover for these disasters. Or your policy may need to be upgraded for covering it which would mean spending extra sums of money each year.
Now that we’ve highlighted the most important things to keep in mind while purchasing a property, make sure to look out for each of these. In addition, you must check the property depreciation schedule once to gain further clarity on the value of capital assets. So, save yourself from any additional costs even if means spending a lot of time searching.