Property investment is a dream for many people, which in the background will involve a lot of hard work and dedication. At times the market might intimidate you and make you scratch your head while deciding what to invest in. Before sealing the deal, it is advised to dig deep about your future holding since it will be the most significant investment you’ll be making in your entire life.
This article, in a nutshell, covers a few essential questions to be put out to the seller and a property investment consultant before signing your property papers.
1) Why is the property on sale?
There may be several reasons the seller might’ve chosen to sell his property, either due to Downsizing or job relocation or for any personal reason. Though the probability of getting a proper reason behind the sale is low, you will be able to estimate the property’s value along with the selling time frame.
If the seller is in a hurry to sell off their property, you will have an edge in negotiating by knowing the reason behind the sale.
Learn the art of negotiation by grabbing an investment course. By doing so, you will have the knowledge and skill of the property market.
Don’t forget to ask for a sales report as it can give you an overview of properties similar to the one you are inspecting, which have been either put on sale or has been sold to a buyer.
2) ‘Property on sale’ market duration
One of the deciding questions you need to ask the agent is about the time of the property in the market. If the property has been in the market without buyers, that is a major red flag you shouldn’t oversee. The property’s longevity in the market can be either due to overpricing of the property or underlying defects or an unfavourable neighbourhood. Make sure to know the exact reason behind the prolonged presence.
3) Know the taxes and the rights on the property
The tax break program is different in different states and countries. Additionally, some properties might incur more tax depending on their land. A good property investment course can give you more insight into the numbers and break-ups.
Rights to road access rights to development are some of the many rights that come as a package along with the property you will own. A bundle of rights makes up a title, and these titles will be passed down from one owner to the next. So, make sure to know if these titles are up to date.
4) Is the property in the right location with all the basic amenities?
When you hire a local property investment consultant, they will give you a complete rundown on the property’s pricing, the region’s demographics, how it fares with other localities and such. This will help you narrow down and erase questions on the property’s location.
Another factor of which you should be aware is the Dead zones. Some properties will be pestered with electricity outages and heavy signal loss. Hence, if you are investing in a property, ask the seller and the agent this question.
5) Tinkers with the property
Renovations, albeit major or minor, will have to be considered while quoting a buying price of the property in the picture. Get to know if licensed contractors were behind the renovation job because if they weren’t, it’d again blow a hole in your pocket to redo it.
Other mandatory things to be requested are the building inspection report and the building permits. Double-check with the local council to know the legitimacy of these property documents.
A building inspector can do these tasks, but it’s both time and money-saving to ask the agent or the seller yourself.
6) Is the property neighbour friendly?
Your dream home can be dreamier if you are next to the right neighbours. Ask the agent if the neighbourhood aligns with your lifestyle. The internet can give you insights, but not more than what the agent can provide. So, ask away and find a property in a good neighbourhood.
Final word
These were a few of the many questions that need to be asked and answered. Dig deep and do your research before zeroing in on your perfect property.
Because it’s not just any investment, it is a lifetime investment.
Interesting Related Article: “Financial growth through property investment & doing things right“