As many people rent property, it is no secret that over time, the question of buying instead of renting property will come up.
Making the decision to move from renting to buying property is a huge step that should be an educated decision. A lot of factors go into owning property, making it vastly different from renting. You should be prepared for the responsibility that buying property brings.
Here is a list of factors to consider before buying property:- Consider your budget: Setting a clear budget will guide you in terms of what you can and cannot afford. This will definitely help in making the right financial choice to fit your pockets. The last thing you need is to go overboard on your first property purchase.
- Research: It is crucial to do your research before purchasing property. The buying process can be very tricky especially if you don’t know what to expect. Research the right price for the type of property you are looking to purchase, the neighbourhood as to where it is located and if buying that particular property will yield future return on investment. Always remember to align yourself to a reputable agency/property professional who can guide you correctly through this process.
- Establish your need for the property: Whether it is a spacious property that you are looking for, easy access to shopping centers, good schools, medical facilities or work area, outlining your needs prior to purchasing will help you choose the correct property to best suit you. Also consider your long term needs. Will the property still serve its purpose in a few years’ time?
- Profitability: Invest in a profitable property, this will ensure an appreciation on your home over time. It is beneficial to buy property in a good area with ample opportunity for future growth. This will make it easier to either sell or rent out the property in future, should you wish to do so.
- Fixer-uppers: Be careful when buying fixer-uppers, it could potentially cost you more to renovate the house than expected. Make sure you know of all the defects that the house comes with and find out exactly how much it will be to fix every problem before putting pen to paper.
- Be prepared for more responsibility: When you own a property, you will be fully responsible for the maintenance and upkeep thereof.
- Have savings: Having savings will help cover unforeseen expenses.
Advantages of Owning Property:
• Less property remodeling restrictions
• More privacy
• Potential for rental income
• Property value increase over time
• More stability and security
• You pay off your own bond instead of someone else’s.
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Intro Real Estate, it’s the right choice.
