Property Buying Guide
A person will make several significant purchases during the course of his or her life. Of these investments buying property is often considered to have the deepest impact upon your financial standing.
Record-low interest rates notwithstanding the continually rising property prices require a greater than normal initial deposit or investment from a potential first time buyer. Drawing from this we can see that your price range and mortgage terms are directly related to the amount of funds you are able to commit to a deposit.
As with most, if not all economic markets, increased demand has a direct impact upon asking price. When beginning a property search choose a time of year during which real estate agents are experiencing sluggish or slow sales. Studies have shown December through March as a "slow" period for homes sales, which translates into a favorable buyer's market.
Focus on your Objective
While it is important to keep an open mind while searching for property, taking the time to refine your search will save you time and money. Take some time to outline a specific goal with your real estate agent. Using all available research material such as print classifieds, internet forums and online mortgage calculators, will allow you to not only increase your knowledge on the subject of property investment options it will prepare you to ask questions often neglected by first time buyers. Are there schools nearby? Are there shopping centers in the area? What parking is available in around the property? It is often suggested that when considering properties that you employ a surveyor allowing for a more accurate representation of the properties worth and value.
Your Real Estate Agent
A good real estate agent will take into consideration your property details and price range at all times when sifting through the large number of property investments to find those which best match your guidelines. Remember your goals for this purchase and do not hesitate to end relationships with agents who continually recommend properties that do not fall within your investment parameters or that are inaccurately represented in an attempt at unlawful property misdescription.
In order to maintain an effective working relationship with your agent it is vital that you avoid high traffic days and honor your appointments so that you can be assured of your agents undivided attention.
Mortgage-in-Principle
One of the most effective ways to ensure that you will be able to obtain your property is to secure a mortgage-in-principle ahead of time. This allows you to enter into any negotiation with the knowledge that the financial aspects of the sale have been finalized and funds are instantly available. In order to expedite the lending process it is important to be prepared with your credit information before your appointment with the banking institution. Many real estate agents and independent financial advisers will recommend mortgages, but you should also make your own enquiries.
Property Lawyer
A good property lawyer (or solicitor in some countries) will be able to handle the sometimes daunting task of handling communications between parties, resolving issues that may block a sale of investment property and filing the appropriate paperwork and legal forms. You may also use the find a lawyer form on www.ibk-lawyers.com to search for property lawyers and firms which can aid you in your search to find the right property lawyer for your property purchase.
Making an Offer
Timing, as in politic and cooking, is important when your bid is in place for the property of your choosing. Keeping in weekly contact with your mortgage lender, property lawyer and surveyor will spur them into prompt action. You might want to bid slightly lower than the asking price to give you some room for negations to begin from. Once an offer has been accepted and the property has been taken off of the market and you should enter into an "exclusive" or "lockout" agreement to secure your bid and offer, as well as provide for the handling of any deposit.
Property Insurance
Vital to the purchase process is the insurance of your property. This will need to be completed as soon as the property sale is complete. Although many mortgage lenders will be able suggest property insurance, it may be in your best interest to explore other insurance options and to remove any additional insurance add-ons such as mortgage payment insurance. Keep in mind that this decision should be based upon your current fiscal situation.
When completing your receipt of the property your property lawyer will provide you with a list of all home furnishing included in the sale. This must be accurate and match the actual contents of the home.
Finally to avoid issues and disputes in the future check carefully the boundaries of the property and research any past disputes with your neighbors. Although a good property lawyer will have researched and resolved these issues it is prudent to insure that your significant purchase is well documented and researched.
^This article does not constitute financial or other advice and is intended to provide only general discussion and should never be used in place of professional advice. We accept no responsibility for any loss arising from any action taken or not taken by anyone using this material or in reliance thereof.