Making hard decisions is a part of life, but none comes harder than choosing the right property. Whatever you need it for, it has to be the perfect place. And, you have to deal with all the complications and snags that come with the process. If this is your first time, it can be a daunting experience. To help you, here are a few tips for the first time buyer.
Research the Market
First, there is the general market. Is this a good time to buy any property? Will you get tenants if you do, or can you move straight in? Can you recoup or pay the mortgage repayments? Check your goals against the market and come to an informed decision. For example, if you want to use the property as a supplementary form of income, is there a good chance of letting the property for the right money? If there isn’t, think twice about your investment.
Ask yourself questions like this all the time, especially the risks versus the rewards.
Do the Math
Before you start looking at new properties, sit down with a pen and paper and work out whether the investment is likely to work. Although the right property is a good investment, it is not a foolproof method to earn more money. If you cannot afford the investment in the first place, don’t even consider making any down payments.
Shop around and get the right Mortgage
The mortgage is one of the most important facets of investing in any property. In its most basic form, you are going to have to recoup the mortgage payments to make a profit. Therefore, agreeing a mortgage that you can pay back and make money off in the first place is essential. Like all purchases, shop around for the best one available to you so check lenders’ websites and comparison sites.
Haggle over the Price
The price is not set in stone. In fact, the property industry is one of the only purchases that you will make without paying the retail price. Buyers and sellers alike see the price as a ballpark figure, so don’t be afraid to make a low offer and see what happens. Even if the offer is far below what the seller is looking for, all they can do is reject it, and then the real negotiations begin in earnest.
Consider your Role
Obviously, if you are buying a property, you can be as hands-on as you like. A lot of buyers love to know every part of the process because after all, it is their money, and they want to know how it is being spent. However, if you are a first-time buyer you might want to delegate the task to a professional like real estate agents or buyer advocates. Both are professionals who try to negotiate on your behalf, although there are differences between the two professions.
Investing in property is never easy, but these five tips are a great way to get your foot on the property ladder if you are a first-time buyer.