When I won a large sum of money when playing the lottery a few years ago, I decided to invest some of it in real estate. My dad used to always tell me that bricks and mortar where a great way of protecting a large sum of money. Unfortunately, my father wasn't a real estate expert so his advice did not go beyond this very simple statement. I didn't know what to do for the best so I contacted a real estate agency. They were really great and they helped me to plan my property investments wisely. I started this blog so I could offer advice to others.
Buying property is a preferred investment option for most people since it involves little risk. Besides, real estate appreciates within a short period. If you wish to invest in property, read the extract below for some useful pointers.
Assess The Location Of The Property
The property location is a significant concern since it could either foster or hinder its appreciation. Typically, an ideal location should be close to public amenities such as roads and hospitals. Besides, the property should have access to social amenities such as malls. Conduct some due diligence to establish whether the area is vulnerable to natural hazards such as wildfires and floods. If this is the case, you could have to spend more when building the property.
Check the type of properties built in the surrounding. Typically, you will sell the property for more if the area has modern homes. Remember, everyone wants to live in an appealing neighbourhood.
Check Property Documentation
The property you intend to purchase should have genuine documentation. For example, it should have a title registered under the seller's name. Consult with the lands office to establish the plot number and size. These details should be similar to those written in the title. Additionally, check whether the property contains easements. For example, it could be that the local drainage or power lines pass through the property. Ask the seller for a certifier's certificate to prove that the contractor complied with the building code. Additionally, ask for renovation permits if the property has undergone significant structural renovations.
Check Land Planning Laws
Land planning laws will determine the kind of development you can put up. For instance, if the area is zoned for commercial use, you cannot erect your home. Besides, check what properties are allowed in the area and the subdivision laws. Remember, you could opt to subdivide the land to raise capital for your intended development. If the area is a strata development, assess the owners association bylaws and finances.
Involve Real Estate Professionals
Although you will find DIY internet guides on buying real estate, it is always wise to engage professionals such as conveyancers and real estate agents. These professionals will ensure that the property you purchase does not have defects and will not expose you to future liabilities. Besides, they can help you identify issues such as easements and wrongly placed boundaries. Moreover, the professionals will negotiate the property pricing and the terms of sale. If you do not have adequate finances, they will assist you to secure a suitable mortgage.
When buying property, assess the property's location, establish the reason for the sale, check land planning laws and involve real estate professionals. To learn more about property investment, contact a real estate service.
Share21 July 2021
