Buying an apartment for the first time can be a daunting task when considering all the factors you have to weigh. And since this is one of the biggest investments one makes in life, the room for mistakes is minimal. This should neither be a leap of faith, nor a gamble: you need make an informed decision based on your preferences and budget, as well as market conditions and prices. So, get your finances in order and your priorities straight, and be prepared to cover all the bases.
Numerous properties are springing up across the country, the real-estate development is booming, and we are a bit spoiled for choice. Apartment living has a whole lot of appeal for many people, but on the flip side, there are many things to be mindful of. The economic climate is not as splendid as we would like it to be and things could always take a turn for the worse. So, you have no other options but to stay on top of facts and figures and see the bigger picture. This involves, for example, familiarizing yourself with the way economy is going and major trends in the real estate market.
Ups and downs
First off, at this moment, it is unclear whether the increase in nominal value will stay relatively low. The price growth trajectory is important since it determines the return you can expect should you for any reason decide to sell the property. It seems that the price inflation and volume of transactions are not alarming. Alas, historic elections and the decision of the Federal Reserves to increase interest rates have raised mortgage rates, affecting the affordability of apartments. For now, the “healthy affordability” remains, but that may not last long.
Bear in mind that in the long run, you are not only paying the upfront on the real estate, but also transfer, bond costs, agent commission and initiation fees. And in case you are buying a strata title, you have to identify the annual owner’s corporation fees. Likewise, factor in maintenance and hidden costs right from the start. The apartment does not have to be in impeccable shape and pretty as a picture. In the long run, you could a profit on property which demands some work. Finally, it could be that there are some upcoming major works you may take part in.
Place to be
The location plays a huge role. Infrastructural projects and planned developments, including schools, roads, and shops have direct impact on property prices. So, it might be possible to find a home with a low present, but high future value. And with the rise of online platforms, there are a lot of places where you can find good units for sale and compare prices. Of course, you can always do the good old cruising around. Keep your eyes open for amenities and facilities in the vicinity. This will give you a clear idea about the elements that make or break living in a certain neighborhood.
A list of things
Do not go anywhere without a checklist of things you cannot afford to overlook. Focus on bare necessities like kitchen appliances, furnishings, and insulation. Make sure that the configuration and the number of rooms suit your needs. Once you come through the front doors, take a good look at key pieces of furniture and inspect the plumbing and electrical systems. There are many problems the seller may try to sweep under the carpet, so be vigilant. The structural integrity of the home is one of the most vital aspects you must address. A reliable inspection report on the real estate shape can help you bring down the price of the new apartment and make the pre- and post-move work go easier on your wallet.
The hunt is on
Before going on the homeownership adventure, you have to test the waters. Buying an apartment is emotionally trying and one must also make a sound choice from a financial and personal standpoint. In any event, you cannot take sellers or their agents for their word. If you really mean to take a crucial step and dive into homeownership, be advised on all the multifarious costs, and put together an essential apartment checklist. This year, some trends may reverse and impede your plans, so a good time to act would be now.