1. What is your budget? How much can you pay? You may need to do some comparisons between different types of properties in different locations. You also need to make sure you have enough cash on hand in addition to what you can borrow to complete the sale.
2. How much can you borrow? Your bank or mortgage broker will be able to tell you this. The main considerations are the value of the house you are considering and how much money you make. Be careful that your loan is not too large that you have nothing left in your budget after making the mortgage payments.
3. Consider the area in which you want to live. Do you want to be close to work, family and friends, good schools, shops, lifestyle venues, sports and leisure facilities, parks, main transport and roads, doctors and medical facilities etc.?
4. What type of property is suitable? If you are looking for a house to live in, which one best suits your lifestyle? Is the house, apartment, villa or townhouse the most suitable property for your needs? Do you prefer old or new properties? How many bedrooms and bathrooms do you need? Do you need a small or large section or lot?
5. Do your own market research. Look for websites that provide information on property sales, and look up information from real estate agents to learn about the market in the areas you are considering. When you make an offer, you will be well informed about how much you should pay for the property.
6. Seek the advice of your advisors. Consult with your lawyer and accountant regarding the purchase contract that you are going to sign. Your advisors will inform you of any terms of the contract that are not in your favor, as well as issues such as whose name should be on the title to the property from an asset protection perspective and the ease of obtaining a home loan. property.
7. Understand that real estate agents are salespeople on commission. Debate continues over whether real estate agents act on behalf of the buyer or the seller in real estate transactions. The fact is that they live off the commissions they earn from the sale of properties and that is why they are self-employed. They will work with both parties to a transaction to achieve the result they want, which is a sale. You want to make sure you stay within your budget when an agent convinces you that the property is worth more than the offer he has made, which he is doing to raise it to the price he thinks the seller will accept. Understand that he is also working on the seller to come down to what he thinks you may be prepared to raise your offer.
8. Choose the loan that best suits your purposes. Give some thought to the type of loan that best suits your circumstances. Don’t limit yourself to a loan with the lowest rates if this loan doesn’t give you the flexibility to finance renovations or access the equity in your home to buy another property you may have planned for the future.
These actions will help you when buying your home or investment property.
