Real Estate may seem like a big step when you’re a first-time homebuyer. There are many reasons why buyers feel helpless at times when purchasing a property without a proper property buyer guide and eventually making common Real estate buying mistakes. These mistakes, later on, cost them a fortune! So, how can you avoid these mistakes? Is there any Secret to it? Here in this blog we dive deep and discover simple formulas so your house can be one of a kind!
We have also discussed this topic in detail on our youtube channel. This video is from our Redbox Original Series. This Video would also highlight investing in real estate benefits:
In this article, we have divided the BUYING process into 5 simplest steps that would help you avoid those mistakes. As a buyer, mistakes to avoid when buying a house lies on you therefore you must be aware of these steps before and after purchasing a property.
The First step is identifying your Need.
Your needs are yours to command! You must first identify your need. The house you’re looking for might not be available anywhere if you don’t know what you’re looking for. There must need where you understand proper investing in real estate benefits.
The Needs can be of many types for instance whether you’re looking for a place to live, then you have to think about a number of rooms. A family of 4 can live in a 2 bedroom home apartment but an individual or someone with a family of more than 6 people may need to think about the number of rooms needed.
On the other hand, if you’re looking for commercial shops or houses for renting then societies, the per capita income, investment security, and profit analysis has to be done for each area before investing. A Commercial shop in Bahira Towns Karachi AQbazar
The second step is customer information search. You may need to have decent information about what you’re going to invest in. You may be in need of a proper Property Buyers Guide like this one.
Making a decision is an end goal but before that collecting true and genuine information is part of the process. Believing in a hoax, or listening to opinions might not be fruitful as they are not the ones who are taking the risk. You are!
Collecting information can be done online and through google. Any society that you’re looking for, it’s on the internet. Any builder or developer’s information, it’s on the internet. The prices and payment plans, it’s on the internet.
The Information is the critical step where the authenticity of your sources is tested. Buying a property can be tricky, although we at Redbox can be consulted for free regarding any Query. You can consult and make a comparison with the information you collected.
There are many avenues for investments, for example, you can earn money from both stocks and Bonds however people consider purchasing real estate for investment as a less risky and profitable income source. Evaluation is necessary! Even in investment in real estate, you must evaluate your option before putting your money on the line.
You must evaluate your options before making a purchase. Comparison with other projects or properties is a great way to check and evaluate. You must understand that investing in real estate benefits may not outweigh the cost if you do not evaluate all of your options.
The Brand behind a project is one of the ways to start your evaluation analysis, whether the is a good and trustworthy brand behind a project or a new brand that has no track record, or maybe no brand at all probably some other person selling you a house. The experience may go from great to awfully sketchy if you don’t pay mind to the brand.
The other thing you could look into is your need. You may not need to spend your life’s saving on a villa that would be too expensive to maintain or too big for a family of 3-4 people. On the other hand, a highly affordable luxury house in the outskirts of the city might be one of the things that look good but inconvenience might out scale your perceived value.
The Purchase decision needs to your most careful step when purchasing or simply investing in Real Estate. The Real Estate markets are steady and offer different values at the time of investment.
The time of investment must match your portfolio, such as
This the part where your purchase decision would be countered with expectations. Be realistic when making a purchase. Your investment should be sound and Insightful. The purchase decision would be carried out with all the legal paperwork thus signing contracts that protect your investment must be sought after as well, discuss this with your lawyer.
The last step, this where the agent and customers take a leap of faith. For Agents, it’s a trust factor that would make or break their market reputation, their loyalty with customers, their market shares. The Project must be delivered on time, with complete satisfaction from customers, this is what the end-user “the customers” expects from the agent.
The Purchase Evaluation involves proper evaluation of the external factors such as the economy and government policies, this is because your property would be highly impacted if the prices, policies, taxes are strict or different than what you would expect. Once you are done Investing in real estate, the benefits and profits might be enough to boost your networth multiple times.
The Purchase process is one of the key steps when handling and diversifying your investment portfolio. You are needed to understand your goals, your needs, and what you want to achieve. The information part is dependant on your analytical and research abilities. There is no need to worry if you can do market research on your own, you can hire a property agent to the biddings for you. The Option evaluation stage would help you pick out the best options from the rest, therefore, making your next step easier, which is purchasing!
Your whole journey of investment appraisal ends here, but your equity building starts now!
You can read our other articles and get ahead of the game! You can also contact the author of this article at Awais.Business420@gmail.com if you have any queries.