Searching for your dream property is never easy. We’ve all been there. It can be overwhelming, tiring, and confusing. The property investment market is extremely volatile, and prices can vary depending on the locality, time of purchase, and economic conditions. It is always wise to consider the factors impacting the property before you make that purchase.
If you are a first-time buyer, this property investment guide is for you. We will walk you through the important points to keep in mind from start to finish when buying a property:
Know your Requirements
Before hunting for your desired property, make sure you are clear about your needs. Are you looking for an empty piece of land or a newly constructed house? Are you looking for a residential property or a commercial space? Do you intend to stay at the place, or is it for renting purposes? Are you willing to purchase a 2-bedroom independent house or an apartment? Is it going to be a gated society?
These brainstorming questions will help you get your requirements right.
Research the Locality
Once you are confident about the type of property, you must study the location of the property. If you are taking it for residential purposes, then make sure to check if the neighbourhood has a supermarket or a department store and a school or college nearby. The property should be devoid of any problems related to basic amenities like water, electricity lines, gas connections, street lights, and sewer lines.
If you are looking for a commercial space, the locality should be well connected by bus, metro, or other means of transportation. It should also be in a populated area or a place of high demand.
Negotiate for a Fair Price
When buying a property, the negotiation part is often overlooked. If you have zeroed in on a space, do not excitedly say yes to your landowner yet. Show that you are interested and would be willing to purchase only at a fair price. Do your homework on the rates of similar properties before you negotiate. If required, you can hire a property consultant who can negotiate the best deal for you.
Consider the downpayment options. You can also check with the owner for monthly installments or ask for loans from the landlord if the money is tight. Have your finances resolved before paying the advance amount. If you are taking a housing loan or a property loan from the bank, consult your landowner so that if they have any tie-ups at the bank, you can benefit from them.
Get your Paperwork Right
The most important stage of buying a property is the paperwork and documentation. Ensure that the right clauses are added to your contract, and always search for hidden clauses that can affect you in the long run. If the property is for lease, check the terms and conditions carefully. Note the time period and the maintenance issues. If you are still confused, then you can refer to real estate investment blogs that detail all the contract terms.
Project your Returns
It is vital to know what returns you can expect after a stipulated period. Your return percentage will vary depending on location, time period, and the potential for demand. Always ensure that your property is in a locality where there is a higher probability of returns. For example, if you buy a property where an airport is being constructed, then chances are that your property will skyrocket considerably. If you are aiming for a residential rental place in a busy locality, chances are that many might not opt for it due to the hefty crowd.
So, know what approximate returns you can expect from a property before choosing it. Also, study the appreciation rate over the years and project its gain. You can learn advanced property calculation skills from a property investment course online.
Consider Property Inspection
You can get advice from quality inspectors or property inspectors to check the property conditions, especially for commercial spaces. They will tell you if it has any litigation attached.
Property investment can seem like a daunting task, but it will be extremely rewarding in the end if you check the right boxes. Analyze the market, study the local conditions, talk to your peers about your decision, get advice from real estate experts, and finally do not forget to project the returns.