Buying a house for the first time and investing in a real estate property with an objective to sell it later both are decisions that are often irreversible all over today. Real estate properties being fixed assets, it’s hard to convert them quickly into cash. And investing in the wrong property is the last thing you want especially if you put in all your life savings on the investment. So here are some mistakes you should avoid when looking to buy a property anywhere in this days:
1. Insufficient research
Would any individual anywhere buy a car without knowing about the features it offers? Of course not! Purchasing a commercial property for business or house to live in requires an, even more, extensive research primarily because of the high cost. Have a look at a lot of options and only after doing a cost-benefit analysis, go forward with the decision. Factors you need to consider include the infrastructural facilities like transport, electricity, water, etc. in the area; the widespread problems in the region; demography of the area etc.
2. Inferior source of financing
You need not be an expert in finance or numbers like people from top investment banks or top private equity firms to make an informed decision. The source of funding you use will have the bearing on your decision. So make sure you list down all possible sources of finance and decide which one benefits you the most.
3. Not taking help
Investing in real estate properties being crucial decisions, one should take as much help as one can from the experts. Make use of reputed real estate agents, home inspectors, and lawyers to help you make the right choice at the right price.
4. Not negotiating enough
It’s important for you to have control over your emotions and not get carried away when you come across a house that seems just right. This might result in you overpaying for the property. Doing so would have other repercussions such as increasing your debt amount, increasing your interest payment, etc. Make sure you only pay for its worth, even if it’s India’s best real estate.
5. Not considering other expenses
Always review the maintenance charges before making an offer if you are buying a house to live in. You would almost always have to spend more than just the loan amount as principal and interest. Break it down to monthly expenses to see how much you are spending on the house.