Find the Right Property
A roof over your head.. that phrase depicts a feeling of security and protection. And that is just what people are looking for when thinking of investing in property – whether it be new homes to live in or property to invest in on a commercial basis.
However, you have to also be aware of how to go about finding a property which would be good to invest in, and the following few tips could lead you to the same.
Depending on the area where you wish to invest in a new home or property, you should check to see whether prices have been constant there or whether there has been a fall in rates. Globally, the real estate scenario has seen a change, with some places showing a rise in prices of property while others have remained stable and yet others have seen a downward trend. It is good to check out the reasons for such changes and then, according to your budget, decide whether or not it is worth it, in that particular area.
Sometimes, if the commute time from home to work is not a big issue, it is worth looking for a new home in a Central Pennsylvania area where the price will be less and, more often than not, the accommodation far larger and roomier than in the city. Alongside picking somewhere close to where you work, It’s also worth searching to see what else is around the area such as schools, grocery stores, and public transport. Once you’ve found an area you can see yourself living in, you can use a home search site like berkshomes.com and filter your preferences to find your dream home.
If you are looking at investing in property for commercial purposes, it is better to look in a “growth area”, where there is a higher demand for rentals property.
2. Valuation of the Property
This process determines the economic value of property and ensures a fair market value for both the seller and the buyer. As the benefits of real property usually come into effect over a period of time, an estimate of the value of a property is sometimes defined as the present worth of future benefits.
It is strongly recommended that the valuation of the property, which is very important, is carried out by a qualified valuer, trained in the field and who will give a formal valuation covering many aspects such as location of the property, the condition of the building structure, faults if any, special features of the home, encumbrances on the property, etc. A written Valuation Report will be provided and, in case of applying for a loan or mortgage, this will be required. Also, the report is usually valid for a period of 3 months from the date of the valuation so this should also be taken into account when obtaining an evaluation.
An appraisal, on the other hand, is just an estimate or opinion regarding the value of a property on a particular date, and acts as a guide to the pricing. Appraisals can be obtained from real estate agents whose knowledge of the relevant area is vast. While a Valuation Report is legal and will have to be paid for, Appraisals are usually not charged a fee.
3. Legal Aspect
It is wise to have the title documents checked by a legal advisor and a written title report obtained. It is also advised to have the lawyer check out other aspects, such as the development plan by the architects to see that it has complied with bye-laws and building codes, as also whether there are any regulatory risks that could be involved in the proposed land or property.
4. New Homes
Are fitted with new appliances and are built with new materials, so the maintenance costs will be minimal compared with a resale home. They are usually fitted with the latest gadgets and equipment which make the running of the home much more convenient and are energy efficient, specifically built to consume less energy. The comfort of a new home will far exceed moving into a resale home. Also, most new homes come with a range of warranties, including full structure warranty for a short term and exterior warranty for a longer term, which is a great financial benefit.
5. Condition and Presentation
One way of knowing whether you are likely to obtain a discount on the purchase price is to get an assessment on the condition of the property and the presentation of the same. If it does not have online photos, then the appeal level is probably low and a discount “manageable”! Another trick quoted by a well-known inspector of homes is to look at the roof-line. It is something that can reveal whether the house is sturdy, vulnerable, complicated, simple or elegant. It can also show whether it will drain properly.
In your final decision, your budget is of utmost importance. Keep in mind ongoing costs, such as insurance, repairs and taxes. So, as the saying goes, “buy with your head and not your heart”, weighing all the pros and cons carefully before deciding on your new home or property investment.