Thursday, September 5, 2019

How to Avoid Expensive Mistakes When Buying a Property

Image Credit - Pixabay CC0 License

Purchasing a property of your own is a huge deal, and likely to be the most expensive
thing you ever buy. The financial commitment involved in property means that it is vitally
important to think any purchase through very carefully. This should help you to avoid
costly mistakes that you later regret.

Live in or Let Out?

The first thing to think about is whether it is going to be a home for yourself or a property
that you will rent out. The option that you choose will have a massive impact on your
property search. 

Unless you are planning to live in your rental property at some point, you need to keep
that bottom line as a firm focus in your mind. Think of it with your business head-on,
rather than your home-hunting head-on. 

Choosing a buy to let property is all about considering which property offers the
most robust investment, and will produce the most significant yield for you. A
property that stands empty for months on end because no one wants to live in it
is going to hit your bank balance pretty hard.

If your intended rental property requires refurbishment, keep close tabs on how
much you spend on these. Ensuring that it meets all the relevant health and safety
regulations is the biggest concern, and this should be prioritised rather than blowing
the budget on decorating

Don’t forget to choose a style and standard of finish for the property which is suited
to your intended rental market. For example, you would need a high-end finish for
the luxury market, and a clean, tidy, durable finish for the family market.

Image credit - Pexels CC0 License

Forever Home, or Just Bridging a Gap?

If you’re choosing a property for yourself, your budget will probably dictate whether
or not this is going to be your forever home. If you are spending big and hoping to
get your dream home, then there will be less that you are prepared to compromise
on in your property search.

You will need to approach your property search with a different mindset based on
how long you will live in it. If you are looking for a property to get you one step
closer to owning your dream home in the future, your priorities will be different.

When buying a home that will act as a stepping stone, you will need to consider
the resale value carefully. Choosing a home which allows you to add a lot of value
in a short space of time is a good idea for this. That way, you can see a return on
your investment much more quickly, and focus on achieving your end goal of living
in your forever home.

Before investing in renovations to add value, you should do your research on other
homes recently sold nearby. Doing some research should show you if there is a
sealing price on homes in your street, that would prevent you from realising the
return that you need to fund your next purchase.

Location, Location, Location

The location of your new home impacts strongly on its value, and choosing the
wrong place could prove to be a costly mistake. 

Always check out the neighbourhood when house hunting, and try to gauge whether
it is the type of place that you would like to live. If you are looking for a location that
is convenient and offers plenty of local amenities, then Savana Living could be ideal.
Take the time to think about what your priorities are in terms of location, to ensure
that you pick the right place for you.

Don’t forget that location can also influence your costs, so this is something to be
aware of. How much property you can buy for your money varies considerably from
place to place.

You will also need to consider the costs of commuting from your new location, and
how that impacts your monthly expenditure.

Be Objective

Don’t forget to stay objective when house hunting. It is so easy to get carried away
and let your heart rule your head when you find a beautiful home. Before taking
the plunge and going for it, you will need to consider all the practicalities to make
sure it is the right house for you.

Making a mistake with your house purchase could prove very expensive in the future.
Think carefully about the affordability of the purchase, how much the running costs
will be, whether the location is right, and whether you can add any value. 

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