It is a dream of every person to own a house of his own. Since the very childhood, we dream to own a house which is just perfect. As a person grows and enters the practical life, this dream becomes the ultimate desire. One should be very careful while choosing the house to buy and before closing the deal. A wrong step can turn the dream of a beautiful house into a nightmare.
Mistakes which should be never made while buying a house:
Choosing the wrong neighbourhood
The real estate world solely depends upon location. Location is one aspect that can highly affect the value of a property. Also, if you are planning to move into the house you need to be more careful about the location. No one wants to live in a place that is not safe and secured or is very far from the basic necessities of life. It is better to do research regarding the neighbourhood and then take a firm step. If you are a family with kids, the basic thing to check is availability of schools in the neighborhoods and accessibility to them. Time and space condos are the best location condos if you want to stay ahead of the game and dont want to commit the mistakes others are committing.
Paying too much
If you are not a real estate person, there are fat chances of you not knowing much about the prices of the houses and this is where a home seller can strike you. It is better to touch and check the prices of the houses in the same locality to get a rough idea. Also, getting professional help from a real estate agent can be very helpful as well as the experienced person can estimate the price of the house and you can know if the seller is asking too much.
Buying a place that needs lot of renovation
This might seem as a very good idea but trust me it is not. Buying a place that needs major renovation work is not at all a good idea. You might think of this as a great opportunity of renovating the place and getting it customized, but major renovation may lead to major expenses. It is better to get and estimate regarding the cost and time required in getting the place renovated.
Picking the wrong lender
Most of the people planning to buy a house will go for a mortgage plan. It is advisable to search the market and choose the right lender who offers the best mortgage plan. You do not want to get stuck with a plan that is too pricey.
Checkout this video to avoid these foolish mistakes.
One of the beneficial features of real estate is that it produces fairly consistent total returns that are a hybrid of income and capital growth. In that logic, real estate has a coupon-paying bond-like component in that it pays a regular, steady income stream, and it has a stock-like component in that its importance has a propensity to fluctuate. And, like all securities that you have a long position in, you would prefer the importance to go up more frequently than it goes down! Please check out M City Condos by Rogers Real Estate, it has great leverage luxury project with big upside potential.
Several of the other characteristics that make real estate exclusive as compared to other investment alternatives are as following:
No fixed maturity Unlike a bond which has a set maturity date, an equity real estate investment does not normally mature. In Europe, it is not special for investors to hold property for over 100 years. This attribute of real estate allows an owner to purchase a property, execute a business plan, then dispose of the property whenever appropriate. An exception to this quality is an investment in fixed-term debt; by definition a mortgage would have a fixed maturity.
Tangible Real estate is, well, real! You may visit your investment, speak with your tenants, and show it off to your family and friends. You may see it and touch it. A result of this attribute is that you have a certain degree of physical control over the deal – if something is wrong with it, you can try fixing it. You can’t do that with a stock or bond.
Requires Management Since real estate is tangible, it needs to be managed in a hands-on manner. Tenant complaints must be addressed. Landscaping should be handled. And, when the building starts to age, it wants to be modernized.
Inefficient Markets An ineffective market is not necessarily a bad thing. It just means that information irregularity exists among members in the market, allowing greater profits to be made by those with special information, knowledge or resources. In distinction, public stock markets are much more efficient – information is well dispersed among market participants, and those by material nonpublic information are not permitted to trade upon the information.
High Deal Costs Private market real estate has high purchase costs and sale costs. On purchases, there are real-estate-agent-related charges, attorney’s fees, engineers’ fees and many other costs that can raise the efficient buy price well beyond the price the seller will actually receive. On sales, a substantial brokerage fee is generally necessary for the property to be properly exposed to the market.
Lower Liquidity With the exception of real estate securities, no community substitute exists for the trading of real estate. This makes real estate more difficult to sell because deals should be confidentially brokered. There can be a substantial lag between the time you decide to sell a property and when it really is sold – generally a couple months at least.