Buying or renting a property is not all about having the right finances, there is a whole lot involved. There are some basic things you ought to put into cognizance before you take that big step. This article brings to the fore “5 things to know before you buy or rent property”
There are pointers and questions you should answer before you part with money for that property, whether you are buying or renting. The first thing that most of us think of is the adage… “location, location, location”. While that is certainly very critical, there are many other things to consider when buying real estate. Here are some universal guidelines.
1. How long do you intend to live/stay there?
This is an important question to consider because moving is quite expensive. If you’re in a temporary job and may soon be relocating to another city or even state, renting rather than owning might be a better option.
While none of us entirely knows how our future will play out, understanding how long you expect to stay in your new home allows you the chance to decide how large a home you want. If you’re a young couple, a home that is able to grow with you might be appealing. If you plan being single for a while, that counts too.
Whether you’re buying a home to live in or as a rental, the next series of tips can help in either circumstance. What makes a home more comfortable to its owners can also make it more attractive to renters.
2. Jobs in the area determine price
It’s always a good idea to check available statistics or ask a consultant to see how the employment is in an area that you are considering purchasing or renting a home. Areas with lower unemployment, of course, are most attractive in terms of affordability. The greater the demand for jobs in an area, the more likely home or rental prices are to go up.
3. House vacancies in the area
This may not seem that important if you’re planning to live in the house, but actually this is a good thing to know even if you don’t rent your home. If there are lots of vacancies compared to surrounding areas, there could be a slowing in the market.
If you’re planning to rent part of the home, you’ll want to make sure that you have enough savings to cover expenses any time when your home sits vacant. If the market is slowing, there could be a period of several months before you get a quality tenant in place. Being prepared will ease the stress.
4. Crime rate
Crime in an area isn’t always detectable right away from a few visits to your potential home. Do a little digging. Ask questions. Investigate the neighborhood. Some areas may look okay but may have a high crime rate. It’s best to understand the neighbourhood you might soon call home wherever that place is in any part of the world.
Right now, the northern part of Nigeria has high insecurity issues that border on a state of near anarchy. This does not portend good for the zone. This has not exonerated the south from high crime rate issues.
5. Disaster prone or not
Believe it or not, some people like a home so much that they disregard the natural disasters or warnings in the area. This isn’t to say that you should say, “Well, I can’t buy a home in the east because they have major erosion issues” or “I can’t buy a house in Lagos because of flood.” Rather, some buyers are willing to gamble big time. If you are one and do go ahead, then get a high insurance on the property. Then be ready to endure the stress that comes with such decision.
Ultimately, what to look for when buying real estate is about considering the things that will matter not just in this moment, today, but in the years to come. Having a good, strong foundation beneath your home and a safe neighborhood are key components to creating a happy home and the assurance of good investment whether you rented or bought the property.
Did you find this article interesting? Do you have any more suggestions as to what to be on the look out for when renting or buying a property? Then let us know, by dropping your comments and suggestions below in the comment box.