Tips for success for home or apartment purchase
A real estate purchase always represents a big investment. For many people, the purchase of a home is a dream. It is therefore important to study everything before you make the biggest investment in your life. On this page, you will find so many tips and complete information on all stages of your property purchase.
You can complement these elements in seeking the best possible financing for your purchase.
Tips to prepare the purchase
It is important to think hard about all aspects of the purchase of a house or an apartment, because its is a long term commitment. To begin, ask yourself the 10 questions located at the bottom of this page before your first real estate investment. This will allow to understand the different points to consider and will guide you to different tips and information on a given topic.
Then, you should study the current situation of your local real estate market!
Negotiate the price of the accommodation
The housing prices are very high in America and even the rest of the world. One of the critical stages of your project will be to well negotiate the price of the property that matches your search. To succeed, you need to find out how much you can bring down the price compared with the price asked by the seller for this apartment or house.
Consider your real estate purchase costs and learn how to reduce them.
When you make the purchase, you must pay many fees in addition to the price of the transaction. Some are payable upon the signing of the transaction and others each year. Discover all costs incurred by a real estate purchase.
Buying a house or an apartment is a very engaging project financially and usually very important for a family. Take the time to properly inform yourself before acquiring your main residence or to invest in a rental property. There are many errors to be avoided and considerable savings to be achieved.
First real estate purchase: 10 questions to ask before you buy
What are the questions to ask yourself to succeed in your first purchase of apartment or home? Not easy to find when you’re a first time buyer (someone who realizes his first real estate purchase). Here is a guide of the first purchase of housing based on 20 questions to ask before buying your first apartment or a first home.
First real estate purchase: when?
1. A purchase more than a rental?
Renting is not always “throwing money down the drain”, the first thing to do before making your first real estate purchase is to compare the purchase and rental prices. You can use the comparer purchase / rental tools available online. Should be retained long enough its housing so that the purchase is more cost-effective than renting.
You will find also all the points to take into account in our interview to buy or rent?
2. Is my geographical location stable?
The acquisition of housing is financially interesting compared to rental if it is linked to a long term project (the average is close to seven years at present). Or the work requested in addition to geographical mobility. Are you sure to stay more than six years in the apartment or house you want to buy?
3. How many years I intend to keep housing purchased?
If you think there is a risk of leaving this dwelling after a few years, will it be possible to easily rent and thereby to turn your rental investment purchase? Can you sell it easily to a close price of your purchase price?
Be aware that as a general rule, you should never buy for less than 6 years. This period may reach 8 or 10 years in a period of falling prices. In some cities where prices are much higher than rents, this limit can exceed 20 years (this is the case in US biggest cities currently).
4 Are housing prices accessible?
If it is almost impossible to predict the low point of the price of real estate, it is however quite easy to know if the prices are well assessed at the time where you want to buy.
5. My budget is enough to buy the type of property I need?
Defining your requirements in the short and medium term and the budget that can be spend on your first purchase of home or apartment is an important step.
We will detail this with different questions.
Type of property to buy
6. What is my need for surface of housing in the medium and long term?
When you acquire housing for several years, it is therefore essential to clearly define your needs in terms of area. Do you plan to have children in the coming years? Will your children soon leave home?
7. Where to buy my first home?
The location is the number one criterion to define a good real estate purchase. So you must be very demanding on the geographical location of your property (close to your work, close to shops and public transport, etc.).
8. Apartment or house?
Depending on the location and your budget, you can have a choice between an apartment or a house. If in the United States, individual home is the type of housing preferred, there are advantages and disadvantages to both types of housing. Do you prefer to live in a large apartment or in a little old House?
For more information, see our article: “buy a new apartment or old?”.
9. Are you willing to do the work in your new home?
Everyone is not handy when it comes to DIY but an apartment or a house that needs work can be purchased at a less expensive price than a new home. If you know good tradesmen or you are sufficiently handyman, it can be financially more interesting to buy a place to renovate.
10. With balcony, terrace, garden, parking, garage, elevator? What about the amenities.
What are elements other than the area and the quality of housing which are essential to you?