For most intending house owners, certain considerations often come to mind when deciding where to buy or build a property. Some build or buy a home for the family, while others buy houses for business purposes.
Whichever one you choose, there is a fundamental question on whether owning a home actually makes sense for your particular circumstances. Some people believe that paying rent is throwing money away, but there are many benefits in renting, particularly if you move around a lot.
Depending on whichever intention you have for buying a house, there are different features you will also expect to be in the house you want to build or you want to buy. Aside being for commercial purposes, those who buy residential houses consider also the number of rooms in the house.
Some young do not buy house with so many rooms else, it will be an indirect invitation to permanent visitors who will come and feel comfortable. Whenever a beginner buys a house with only two rooms, anyone coming to visit will not be very comfortable because the man and the wife at least will have one room and the children and the house help as the case may be, will manage the other room.
A visitor will have to manage with the children room and because he is not comfortable, he will not consider to stay long. Those who just beginning and goes into buying or building a four room flat need not complain when the visitors begin to swell and become a constant decimal.
The first thing you should do is create a list of everything you want in a house. Then go through that list and put a check mark beside the items that you need in a home. It’s really important to distinguish between wants and needs. As soon as you announce that you’re looking to buy property, you can expect friends and family to come out of the woodwork with all their well-intentioned advice.
Remember that principles that may have been true in the past don’t necessarily continue to be so in the changeable property market. You should be aware that whenever you have a project, all your brothers, relations including your uncles will extend their proboscis either to know your pocket or to find any corner they can pick from you. If you are not available and hand over the project to your uncles, be sure they will increase the cost of every thing they buy to make gains out of them.
But the the always way out of the work in the event that you did not contract your job out is to ask your brother to give you the list of everything bought. This will make you understand whether the quantity specified in the list is more that what can contain in the project.
If you are buying the project, ask two or three agents or valuers to cost the property and give you the real worth. In this way even if you are cheated, the difference won’t be much meanwhile you will get the worth of your project.
Scheduling a property inspection as a part of minding due diligence should be an absolute must on any investor’s checklist. This is especially when you are buying an already developed property. An inspection can help you get an accurate estimate of any repairs you will want to make, as well as address any serious issues that were not detected at first glance.
The cost of repairs, as well as the length of time repairs will take may make or break your investment deal. Including an inspection clause into your purchase agreement can help protect you in the case that you need to back out.
Buying a rental property can be an exciting prospect for a multitude of reasons; it can bring in a solid revenue of income, it can help secure your retirement, it symbolizes a certain financial or investing milestone you have reached, and perhaps you have always wanted to try your hand at “landlording” You may be wondering what to know before buying a rental property, so that you may head into your investment with some advance knowledge. Below you will find an extensive guide to help answer any questions you may have, including some advice from the pros.
In the event of buying a new property, take the time to sniff out any issues with the property by asking agents around or developers and neighbours. By that, you will be sure you are buying a property that will not put you in trouble. Smell for mould, and animal-related odours. Knock on walls to see if they sound hollow.
Open the dryer and the dishwasher – you never know if pests are living in there. Does the toilet flush properly? Does the heating/air-conditioning work? Is the flue functioning above the fireplace? Is the water pressure okay? Hire the most thorough, licensed home inspector you can find to pinpoint any issues that could potentially end up becoming costly repairs.
To avoid conflict, make sure your lawyer is not also representing the seller. Buying a rental property can be a good investment, even great, as long as you have a solid strategy in place.
This includes knowing what to look for when buying a rental property, as well as having the right mindset going into the investment. Moreover, it includes having a clear vision of your personal goals and finances, as well as understanding that buying a rental property should be treated like a business. You may have voiced to yourself “should I buy a rental property,” or perhaps with confidence, “I want to buy a rental property!” Regardless of what your current mindset might be, taking a carefully researched approach will help lead you to a good investment.
Another important factor you must consider is the taxes tagged on the property and the wage bills like NEPA bill, Water rate, tenement rate outstanding and area or community levies not paid by either the owner or the developer. At least, one must make his client know what bills are outstanding and then reach an agreement how to get such bills defrayed.
Most people run into trouble getting into a new house they bought with first considering these bills and how they are to be settled. Many green property owners fail to factor in an emergency fund when figuring out their rental property finances. If you have a major plumbing disaster, have a roof deteriorate, or have appliances break down, how will you pay for it? One would be naive to think that none of these unexpected costs will percolate from time to time.
Many landlords will put away a set percentage of the monthly operating income into an emergency fund to help cover for these often untimely, unexpected and expensive repairs. Before purchasing any type of investment property, oft-forgotten costs such as insurance and taxes should always be factored in.
Make sure to spend plenty of time, and know how much of your budget you would like to spend on an insurance premium, how much coverage you would like, and what type of coverage you would like. For example, what type of natural disasters are common in your market? If your rental property is located in an area commonly susceptible to, for example, tornadoes or sinkholes, you may want to consider a higher-cost insurance package that provides more coverage.