Blog Post: 5 Things To Know Before Buying New Real Estate

Buying a new piece of property, be it a lot, or one that comes with a house or any structure, can be daunting. Especially if you’re moving to a new place.

But with proper research and a good amount of patience, it can mean avoiding a lifetime of frustration and a significant amount of money saved in the bank.

Here are five tips to make sure that the property that you plan to buy is the right one for you.

Know what you want

Before even looking at listings in your area, you should determine why you are even buying the property. What purpose will this property serve you? Do you plan to stay here, or turn it into a commercial property? Is this where you’re looking to spend your life’s savings for a well-deserved luxurious retirement home? Are you looking to build an office space? Perhaps even a bed and breakfast?

These are fundamental questions that you must answer before deciding because they inform the kind of property that you will be looking for. Figuring the purpose of this property will then enable you to determine the ideal location, as well as the price range of the lots that you can choose from.

Spend only what you can afford, but do not be afraid to negotiate.

Do not go fast and loose, especially with bank loans. Spend only 40% of your income.

Shop around for better deals on housing loan rates. Do not be afraid of a little haggling. Almost always, the banks will try to outmatch the offers of their competitors in an effort to get you to sign their contracts.

Another tip: Get the loan with the longest payable term possible, but pay the maximum you can afford to save on interest, in the long run.

Choose ‘motivated’ sellers, or just buy from a bank

Land will always be a good investment, but lots can often be bought and sold depending on the situation of the selling party.

Buy from auctions or negotiated sale through banks because more often than not, they don’t need much profit. They only need to gain enough to start lending again. The fact that banks are also generally reputable sellers is also a plus.

Buying from people selling out of dire need is also a good option. For example, people selling houses to fund a medical emergency, or people liquidating their assets will generally offer lower prices.

Remember, factor these considerations only after determining the purpose of your property. The lowest bidder isn’t always the best.

Do your homework

Perform a thorough inspection of your property multiple times before buying it. If the property already came with a structure and you intend to keep it, check it for any would –be structural hazards. Check both the exterior (foundations, walls, gutters, etc.) and the interior features.

In the case of older buildings, bring someone with an extensive experience in construction to perform a thorough inspection and give you an accurate picture of the necessary repair work that may come ahead.

Doing this can potentially save you from all the headache, not to mention safety disasters that come with unsound structures.

Also, make sure that the seller of the land complies with all legal requirements. Consulting with a local lawyer might save you the trouble of dealing with hidden legal issues that may pop up later.

Hire a reputable contractor

Once you have decided on buying a property, and given that you have already determined what to do with it, you may also hire a design and build contractor.

Contractors such as Constant Integrated Project Development Corp. are prepared to take care of all your architectural and construction needs, even as we welcome your input. We will also be prepared to perform a second level of assessment as part of our protocol in performing our services.

CIPD also handles all the necessary legal requirements of construction so that you can concentrate on your vision.

CIPD’s network of brokers and even suppliers will give you options without the added trouble of canvassing for yourself. You can still be on top of the project, but you can rest assured that you are covered by professional and expert help.

Get in touch to learn more.

Originally published by Constantin Design & Build on November 8, 2017.