Purchasing your first real estate property is a very important milestone for every person. Some opt to buy a property so they can live in it while others use it as a source of income. Regardless of what your intentions are, you want this investment to drive the results that you expect from it.
Here are some points to bear in mind when buying your first real estate property:
1. Do Your Homework
Buying any real estate property without doing your homework is a recipe for disaster. Before you make a decision, you must create a plan on what you’re going to do and how you can pull it off. Are you looking for a rental property? How much do you think you can afford? Are you going to look after it yourself? These are just a couple of questions that you must ask yourself when doing your homework. Lay out your goals and how you plan on realizing them.
2. Choose The Right Location
Even though buying a property in your local area is the most lucrative course of action for first-time buyers, you should still thoroughly research all your options when it comes to the location of the property. Ask any Coquitlam realtor and they’ll immediately tell you that location is key.
The property you should look to buy must have close proximity to desirable locations to help increase its demand and value. This is particularly true for buyers who are looking for rental properties. You don’t want a property that sits in the middle of nowhere, unless you’re going to transform it into a weekend getaway destination sort of rental property.
3. Buy What You Can Only Afford
Everyone dreams of owning a beautiful home that they see on a website or magazine, but in reality, not all people can afford such luxury. You should ask yourself if you can afford such property. To answer this question, you must know exactly how much you can afford to spend. This includes getting familiar with your finances and keeping track of your credit score as you try to improve it.
If you’re looking to finance your purchase using a loan, you need to have a higher credit score. You also need to have a sizeable down payment. Most first-time buyers are asked to put up a higher down payment, so ensure that you have enough funds for it.
4. Analyze The Local Real Estate Market
It’s critical that you have a good understanding of the current condition of the local real estate market where you’ll be purchasing a property. This is to ensure that you get a great deal of return on your investment.
This involves monitoring the prices for a certain period of time, paying close attention to the length of time that most properties in the same price range, and looking out for any major changes in the asking price. Doing all these can be difficult for a first-time real estate investor, so you might want to seek assistance from an experienced realtor.
5. Inspect The Property Beforehand
An inspection is always needed when you buy any kind of real estate property. You might think of it as unnecessary, but if you want to avoid some of the worst hidden costs that come with buying a property such as repairs and renovations, then an inspection is definitely worth the cost.
This is where you get to channel your inner detective. Take note of any details (minor or major) you can find in the property that you’re looking to buy. Be sure to include those things that can’t be seen by the naked eye such as its history.
6. Ask For Help From An Experienced Professional
Real estate professionals can certainly give you sound advice. Those smart and successful realtors can even smell a bad property investment a mile away. It helps to ask for guidance from these experts and provide you with advice or guidance in this new venture. They can also help you find a good deal and get you the property that you really want.
Buying the first property is always a daunting task. And if your desired property is located somewhere else, the process can even become more nerve-racking. Doing your homework beforehand can give you the best possible start. Take your time and do your research first about the real estate market in the area before making a decision. If you do, you’ll soon find plenty of investment opportunities that are waiting for you.