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Everything You Need to Know About the Financial Aspects of Buying Property

February 28th, 2022 Posted in Property Investment
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There are many important financial considerations when buying a property. Therefore, it’s crucial to understand all the costs associated with the purchase to decide whether or not to buy. This blog post will discuss some of the critical financial aspects of property buying. 

Everything You Need to Know About the Financial Aspects of Buying Property - dream house at sunset image
Photo by Alex Staudinger from Pexels

1) The Down Payment

One of the most important financial aspects of buying a property is the down payment. This is the amount of money you pay upfront to secure the property. The down payment usually ranges from 20% to 40% of the total purchase price, although many exceptions exist. 

If you don’t have enough cash saved up for a down payment, you may be able to get a loan from a bank or other lending institution. However, be aware that taking out a loan will increase your monthly payments and could also add years to the time it takes to pay off your mortgage. 

2) The Mortgage

Once you’ve saved up enough for a down payment, the next step is to get a mortgage. A mortgage is a loan from a bank or other lending institution that enables you to purchase a property. The mortgage will have specific terms and conditions, including the amount of money you need to borrow, the interest rate, and the length of time it will take to pay back the loan. 

It’s essential to shop around for the best mortgage rates and different mortgage brokers, as they can vary significantly from lender to lender. Also, be sure to read all the fine print before signing any paperwork! 

3) The Closing Costs

In addition to the down payment and mortgage, there are also closing costs associated with buying property. These are fees charged by the lender, real estate agent, government, and others involved in the transaction. Closing costs can add up quickly, so it’s important to factor them into your budget when considering whether or not to purchase a property. 

4) The Maintenance Costs

Once you’ve purchased a property, there will also be ongoing maintenance costs. These can include things like painting, repairs, landscaping, and more. It’s important to factor these costs into your budget when deciding whether or not to buy a property. 

5) The Property Taxes

Another important financial consideration when buying a property is property taxes. These are levied by the government and can be a significant amount of money, depending on the property’s value. Therefore, it’s important to factor in property taxes when budgeting for your purchase. 

6) The Insurance

When you purchase a property, you will also need to get insurance. This protects you in case of damage to the property or if someone is injured while on the property. The cost of insurance will vary depending on the property’s value and the location. 

There are many important financial considerations to consider when buying property. By understanding all the associated costs, you can make an informed decision about whether or not purchasing a property is the right choice for you.

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What To Think About When Buying A Property Overseas 

January 26th, 2022 Posted in Property Investment
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The process of purchasing any property can be a difficult, convoluted one, and that’s when you’re going to buy something in your own country. When you’re buying a property overseas, whether it’s because you want to live there or you’re expecting to rent the home or apartment out to vacationers, it might seem even more of a chore. It doesn’t have to, however, and if you can make sure you have thought things out well before agreeing to sign anything, you should be able to see your way to the finish. Read on to find out more about precisely what you should be thinking about when you purchase a property overseas.

What To Think About When Buying A Property Overseas - house and keys image
Photo by Alexandr Podvalny from Pexels

Why Are You Buying?

Before you do anything, you need to figure out why you want to purchase a home in a foreign country in the first place. Buying a home for your own use versus renting it out to make additional money is a critical difference, with pros and cons for each.

To choose a home that best matches your needs, you must first determine why you want to buy in the first place. Vacation homes may have to be bigger, include additional features like a pool, or be located in a more convenient location near local businesses and activities. When you’re shopping for yourself, these considerations may not be as relevant, and you’ll be more concerned with your own comfort. In addition, because you won’t be renting out the house, the price will be a more important factor because you won’t be generating an income from the property itself. 

Consider The Location Carefully 

It’s possible you’ve already decided on a country, but have you decided on a particular spot within that country? For this, you’ll need to do a great deal of investigation. Choosing a location that attracts visitors is essential if you want to rent out your property. If you plan on living in the home, you may want to avoid the tourist regions in order to get some peace and quiet.

Getting in touch with a local real estate professional is one of the best options you have. You should consult experts in the country where you’ve decided to buy a home if you’re looking for an area with a rich history and a thriving tourism industry. What matters most is finding people who are knowledgeable about the property market and can help you make a wise investment decision.

Do You Need A Mortgage?

When buying a property overseas or in your own country, paying cash means you don’t need a mortgage at all, although you may still need bridging finance. However, this isn’t an option for most people, and therefore they will need a mortgage.

Due to the fluctuating currency rate, it is the mortgage that might pose problems when purchasing a home overseas, regardless of how much money you have saved up for the down payment. You could believe you’ve borrowed enough money to buy something in a foreign country, but the volatility in the currency rate means you may not have. This might cause problems and potentially mean the transaction has to be canceled. It’s impossible to know when currency fluctuations will occur, so make sure you have everything in writing so your money is protected.

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Selling a Property? Check Out These 4 Tips To Increase Your Returns

December 26th, 2021 Posted in Property Investment
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In 2020, the pandemic and unstable economic climate have caused many families and households to gain interest in homeownership. In turn, this has caused a housing market bubble, which has caused the median home prices to skyrocket to 407,000 US dollars – an 18% increase compared to the previous year!

So, if you have decided to put your house or property on the market today, you can obtain great returns from your asset – especially as house prices are so high. However, the competition in the housing market has never been fiercer, and understanding how to make the most of your property is essential. If you are not sure where to start, check out the tips below. 

Selling a Property? Check Out These 4 Tips To Increase Your Returns - realtor with sold board
Photo by RODNAE Productions from Pexels

Consider Staging the Property

If you have an empty or older property, your real estate agent might have suggested you stage your property to close the sale faster. However, of course, this service comes at a cost – but is it a cost worth paying)

The 2015 National Association of Realtors Home Staging Report tells us that staging a property can increase its market value by 10 to 20%. And, if you are looking to close the sale fast, you should keep in mind that staged properties are sold 85-90% faster than others. 

While this isn’t necessary, your home can gain value and find a new owner in less time. After all, potential buyers will want to imagine themselves living in the property, and an unkempt living space might not be so appealing!

Hire a Marketing Agency Specializing in Real Estate

When deciding to sell your home, you will have to treat your property as an asset. Just like in the case of other industries and sectors, to close the right deal, you will need to tap into the right market, target the right buyers, and understand what channels of communication to use. 

Working with a specialized marketing agency that focuses on the property market can help you brand your home. The marketing agency will be able to target potential buyers by demographics, income, marital status, location, age, and time of day. 

Invest in High-Yield Renovation Projects

If you are looking to buy a home, you should look at your finances early and complete all the projects to increase the returns from your sales before putting it on the market. However, not all renovation projects will yield the same returns! For example, renovating a kitchen or a bathroom are expensive projects which can increase your family’s comfort level but can prevent you from recouping the money spent. 

Instead, redoing the sidings, garden, flooring, and repainting the property are inexpensive tasks that can increase your home’s market value.

First Impressions Matter!

Nothing boosts the value of a property like its curb appeal. Your potential buyers are likely to feel an emotional drive and make up their first impression of the property within seconds of seeing it. 

Luckily, you can improve the curb appeal of your home by painting the exteriors, fixing the roof, landscaping the garden, and improving your driveway. And don’t forget to repaint your front door! 

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Considerations When Choosing the Right Property

October 13th, 2021 Posted in family finance, Property Investment
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Finding the right home to suit your needs can be a long and difficult journey. There are countless properties available out there, but at the end of the day, not every property will be ideal for you. You’re going to have to get to know exactly what you want to find one that ticks all of your boxes. Now, don’t be hasty with this process. Remember that your home is likely to be one of the most expensive things you’re going to purchase in the duration of your entire lifetime. At the same time, your home is going to be the space that you spend a lot of time. You’re going to want to make sure that not only is it aesthetically pleasing, but that it is practical for your day to day use too. Finally, you’re going to want to find the right property the first time around if possible. Purchasing a home and moving in requires a lot of time, effort and money. You don’t want to realise that the property isn’t meeting your needs soon after moving in, as this would mean going through the entire process again. Here are some things to consider when it comes to choosing the right house for you!

Considerations When Choosing the Right Property - house lit at dusk image
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Location

Let’s start with one of the biggest factors to consider when buying a house: location. Where do you want to live? Locations needs to be a really practical decision. Sure, you might want to live somewhere stunning, like overlooking the sea or at the foot of a mountain. But will you be able to get on with your day to day life in these locations? For some people, the answer to this will be yes, or they’ll be willing to adapt their life to be able to live here. But for the majority, the answer will be no. Many people want to live near their work to minimise their commute, near their family or friends to be surrounded by a support system or near good schools for their children. Some people will need to prioritise being near good public transport links or road links. You should also consider safety. You want to live somewhere with a low crime rate if possible. Then, consider price. You’re likely to find a great location in expensive neighbourhoods easily. If you have a stricter budget, this search may be a bit more difficult.

Property Features

Once you know where you want to live, you can start looking at property features of available properties in the area. Your search will have whittled down a lot, but you’re still going to have to compare individual properties to find the one that best suits you. Let’s take size as an example. How big do you want or need your home to be? If you live alone, you can browse anything from studio apartments upwards. If you have a family, however, you’re going to need more bedrooms and living space. 

These are just the starter steps towards securing your own home. Hopefully, the information will help to guide you onto the path for this exciting journey!

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4 Imperative Things To Consider Before Moving Home

October 12th, 2021 Posted in family finance, Property Investment
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Moving home is one of the most significant moments in your life. You’re taking your existence and taking it to an entirely new, different place. Whether you’ve only ever done it once or you consider yourself to be somewhat experienced in this field, you can’t deny that it holds a lot of importance. There are so many personal and financial connotations surrounding a home relocation, so it’s something that really should be thought about a lot. 

4 Imperative Things To Consider Before Moving Home - packing boxes image
Photo by Michal Balog on Unsplash

Because it holds so much weight and value, moving home should have a considerable amount of questions around it. You’ll have plenty of personal and recreational thoughts going into something like this, but you also need to take into account your finances and how your professional life will be impacted. The world will continue to spin and you’ll need to stay in control of your life when something as significant as this is undertaken. Here are a few questions that you need to ask (and talk about) before you commit:

Will You Be Able To Sustain The Home For The Long-Term? 

Whenever you move house, you aren’t really looking for a one-month stopgap – it’s going to be something that you are hoping to work on for years. If you don’t feel as though this can be something you can handle for close to a decade (or more), then perhaps you should rethink your decision. When the time comes to make a decision and if you are looking for a mortgage, you’ll be advised in all kinds of aspects. You’ll then be tasked with making a decision that could impact your personal and financial future. 

How Far Are You From Your Workplace?

Working is important, obviously. If you are moving to a place that impedes your ability to get to work and back, then perhaps the move isn’t right. If you work from home, then this kind of thought shouldn’t even raise your eyebrow. The same idea should be pondered if you have kids, though, as they’ll need to get to school.

How Are Your Underlying Costs Looking?

In terms of your overall finances, you’re going to have to look at your current regime and evaluate things. You’re going to have a lot of overheads already taking their toll on your bank balance and your savings. Whether we’re talking about basic needs, car insurance costs, debts you may owe, or anything of that nature. Take a look at this aspect before you make a significant decision.

Is It Situated In A Location Suitable For You?  

Whenever the topic of property or real estate is talked about, people always go straight to the location, location, location point. Where the home is situated matters an awful lot. If you (and your family) would like to be in a wonderful location with all of the right people, then you need to put in a little work and do the research. The location also matters due to the accessibility – people will need to be able to reach you and you’ll need to get to important places comfortably. 

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