Buying a property is not as a straightforward process as it seems to be. Whether you are a new buyer or an experienced one, purchasing a property marks a milestone in your life and it is one of the most valuable purchases you would ever make.
When you decide to purchase a property either for residing in it or for commercial use, it is important to evaluate your decision based on a few key points. If you do not find a solution for these you may have a hard time after purchasing the property.
Let’s see those important points on which you should evaluate your purchase. It will make sure that your investment is properly planned and will give high returns in long term.
Evaluate your price range
Before you begin prepping for purchasing a property, it’s important to consider the type of property you want to buy, and what's your maximum budget. It is also essential to see if your budget will meet your need.
Apart from this, you should also see what impact the property you intend to buy will have on your earning and financial status in the future. Keep in mind that property is not a cheap purchase and it will surely influence your financial capabilities now and in the future.
It's a good thing to evaluate your budget, your financial condition, what is the average prices of the property in the market, and what are the areas that will offer more value to the property than others.
We know it’s hard to predict the value of a property in the coming years but it can always be roughly estimated which areas will see a boom in prices than others. This evaluation is essential if you want to purchase a property for investment purposes.
Also Read: First Home Loan Deposit Scheme
How to fund the purchase
We know it’s not easy to finance property whether residential or commercial. Considering how big the amount is needed to purchase the property, no one has it lying around the house. That is why people opt for mortgage loans. Generally, you need to pay 10% of the sale amount in hand when finalizing the deal and the remaining price is deposited in equal monthly installments.
It is also necessary to be aware of the loan interest rate, and any imposed conditions. You should also consider comparing many mortgages and then choose the one which is perfect for you.
Also, know about the obligations and what the consequences are if you’re unable to clear installments for some time.
Insure your property
This is the most important factor you should consider before you decide to move into the property. Insurance covers your protection in case anything happens to the property. Although you’ll be the legal owner of the property only when the settlement is made, it is advisable to purchase an insurance property as soon as you become the legal owner of the property.
There are different types of insurances like house and contents insurance, insurance for public liability, building insurance, and more. You need to see which insurance will be the best for you and it will depend on what are you willing to do on the property.
Also Read: What Does A Buyer's Agent Do?
Research the location
It is also important to research the locality as much as know your financial condition.
A house in a good posh location will be a better investment than a one in the suburbs even if it will cost you more. Similarly, if you want to purchase a commercial property, make sure it is in an area where there is a peak of the business.
Apart from this, a well-developed transport network is also essential near the property you intend to purchase. Similarly, you should have easy access to emergency services like hospitals and other daily services like shopping malls and schools.
If the property falls short of fulfilling any of the stated features, you should rethink your decision.
These are the most important factors that you should evaluate before finalizing any house purchase deal. Once you find answers to all the above points, then only you should consider investing in the property.