Five Common Mistakes to Avoid When Buying a Property

Oct 15, 2014 by

Low mortgage interest rates and a probability that it’ll eventually shoot up in future stimulate people to buy a house almost instantly. Investing in a home is no doubt a major decision that has a lasting impact on your life, so just going head over heels without any investigation is a blunder. You can say it’s a game of luck as flourishing economy means you can resell it at higher price and enjoy residual income while it can always be another way around! So let’s see which mistakes being a potential home buyer you make and how to avoid them.

Property in Dubai
Image: flickr.com/photos/18848216@N00

Don’t Buy if Moving Again

The first error to avoid is purchasing a property whether developed or not especially if you’ll move again after a few months or years. Think about all the expense you’ve to bear now and leaving the place anytime sooner. Go for lease contract instead which is much preferred, even if buying market is on the rise and you feel a surge growing inside, ward off the feeling and be realistic.

Believing Every Word of Estate Agents

Though consulting an estate agent is preferred whether buying, selling or leasing a place; trusting every word of theirs is simply unwise. Meanwhile, these agents trick buyers to believe that they’ve multiple bidders for a property and force them to buy it at a price way beyond market. Whatever you do, don’t fall for the trick and stick with original offer, don’t overspend or else your financial situation will definitely be intertwined. There might be a huge list of villas for sale in Dubai but you should only buy if planning to stay for good!

Overspending

Shopping for houses can be a giddy experience such as look at this and that, how about added countertops plus an office nook! Everyone dreams to have a top notch home but remember you’re not dealing in terms of tens or hundreds but thousands and millions of bucks are at stake. Buying everything all at once will leave you drained so analyze your budget, write down incoming and outgoing expenses and be subtle in your approach! If it seems a bit overwhelming, seek consultancy from an experienced financial advisor who deals with property projects and will be glad to help you out.

Palm Jumeirah Dubai
Image: flickr.com/photos/w4nd3rl0st

Don’t Ignore Overhead Costs!

Buying cost isn’t the only concern but additional expenses such as maintenance, utility bills, property taxes; insurance, grocery and other such will further tighten things a bit. Question homeowners about average utility cost and taxes incurred. Add all the figures and compare with your budget, keep the average quota higher than results just in case!

Impact of Location

Geographical location has a major impact on property including trade cost. Lest the place is bursting with amenities like medical and recreational facilities, grocery market, educational institutions, ease of transportation and 24/7 availability of water, gas and electricity, expect price to shoot up all the way!

Being in the centre of all can be beneficial but not for those who crave peace and tranquillity. Commercial and private properties are priced differently so compare both with your budget and invest accordingly. Purchase a Dubai apartment for sale in Jumeirah or Marina to experience elite living, only if you can afford that is!

Conclusion

Aforementioned are a few common mistakes a potential home buyer generally makes so read, realize and avoid repeating them!

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