Did you know that buying a house is an easy task where all of the paperwork is straightforward and simple to file? The reason you didn’t is that it isn’t true! In any way! However, that doesn’t mean that you can’t do it, you just need to know a few tips and tricks. Below are some great things to keep in mind when buying a home.
Get Your Finance in Advance
There is nothing that a seller hates more than waiting for your mortgage to be approved. This is for the very reason that they could miss out on a good price waiting for your mortgage application that eventually falls through. For this reason, it’s important that you don’t even approach any agents or sellers until you have a provisional mortgage approval from your mortgage provider.
Be Present at Your Property Inspection
Yes, you hired a property inspector to perform the task and complete a report, however, if there is anything in particular that you wanted them to pay attention to or you would like to discuss any problems they find in the moment, attendance is key. It also gives you your own opportunity to notice any concerns of your own which aren’t related to the property report, but ones that you would like to discuss with the other prior to signing the papers.
Title Insurance includes a thorough search of the title to any property you are considering purchasing and protects you from any claims made against its ownership once you sign. For example, if the sale is made without the knowledge of a required party, then that party could raise a claim of ownership against your new home.
Treat Your Estate Agent Well
Your real estate agent is a busy person and they appreciate your patience. To say thank you for spending time on your property and getting you the most possible for it, get them a small gift like something from the Groupon Coupons page for Things Remembered. A small token is all that’s required and can set a great precedent for any future business that you may have together.
Read Everything Before You Sign
Do you know who is responsible for honoring an agreement once you sign it? You! Not the agent who told you to sign the paper. Not the plumber who just needed a signature. You! There are going to be a large number of times where your signature is required to continue the process. During these times, it’s important that you always read anything and everything that is put in front of you.
Speak With Friends and Family
You aren’t the first person to go through this process, so learn from those who have. In addition to these tips, speak with your friends and your family who have purchased property and get their advice. Whether it’s a story about a bad experience or one that went smoothly, each has aspects that you can learn from. Whether it’s forgotten paperwork or an angel of an agent, it all helps.
For those of you just starting off in real estate investments, then you will find a lot to learn if you want to make gains and grow your wealth. Believe it or not, investments in real estate are more complex than stock market investments, due to financial, legal, and detailed due diligence required to make a solid judgment.
So, arming yourself with the correct knowledge, tips and looking at some properties that might be similar to the ones you are looking at investing in will give you a good foundation before making any first-time property purchase.
So, before you grab your money and call to you nearest real estate agent, have a read through these five tips below on the basics to real estate investing:
It might sound a bit cliched but location does matter. Before handing over a bunch of money for a property down payment, do make sure that its location is good.
Additional tip: Go to the best street and find the worst house. That is a general rule of thumb for real estate investments.
The general area or neighborhood is good but the house just needs some work, so this presents the opportunity. Often, real estate investors call this fixing and flipping, where they repair and enhance the house only to sell it for a profit.
Look for the best deal. The Warren Buffett principle is to buy at rock bottom prices when everyone else is selling, so you have lots of headroom to turn the investment around, as it will go up again at some stage.
You should avoid paying the asking price for properties. Instead, so-called “wholesale properties” offered at a steep discount are a diamond to invest in. While they might need some work, calculate if the investment is worth the number should you go to sell later.
It’s not uncommon to triple your investment on a property like this.
The government encourages private real estate investors to provide housing for people. In this way, they aren’t left with the responsibility of it.
So this that in mind, it’s good to know that the government will offer significant tax breaks to real estate investors. You can even write off depreciation, so when you buy a property as an investment, the depreciation of that building could be tax deductible.
Consult your tax adviser for the specifics of your property and overall tax position.
You’ll more often than not require some financing to invest in property. So, you will need to check your credit history prior to any real estate investing.
If your credit report shows up any problems that appear to be mistakes, you should get them resolved as soon as possible. Alternatively, you may need to improve your credit rating.
Great returns can be made from real estate investing. Do your homework and have a solid credit rating before you get started!