Property buying mistake often results in problems that are almost impossible to rectify. So make sure you don’t make these mistakes while buying a residential property.
You must have come across tons of property buying horror stories. All of these had one thing in common – HUGE LOSS. Purchasing a residential property can be really exciting but is full of complexities. For sure, buying a new home is going to be one of the largest financial transactions that you’ve ever made. But many home buyers are not prepared for this to make a good purchase. Here’re a few mistakes you must avoid when buying residential properties. So let’s dive in;
Not Doing Enough Research
First of all, it’s imperative for the buyer to understand his/her family’s finances and needs. It’s recommended to analyze the assets, decipher debts and – most of all – get approved for finance before hopping into the house hunting mania. Make sure you get to know the neighborhood since you aren’t just buying a house but the location as well. There should be the quality of schools nearby, and you must find out about the crime level, transport and possibly upcoming zoning issues. Keep in mind! Not all parts of the suburb are the best spots to live.
Going Beyond the Budget
You must have been through this. Every buyer is pretty much aware of this feeling. You must look for the home that fits your budget. That much more expensive property looks that much more appealing. Keep in mind! If you’re inclined towards buying a home that way out of your budget, it will derail your finances in future. It’s very much normal & natural that we all want to own something that’s little more than we can afford. And you’ll always come across the real estate agents who talk you to the next level.
In such cases, you don’t have to be tempted. The banks normally offer the borrowing limit depending on your ability to repay. But honestly, spending more than what you can afford will increase the chance of you facing great financial shocks that also includes rises in interest rates.
Don’t Show You’re Impressed
Even if you like the house, you don’t have to tell the seller’s agents at any cost otherwise it’ll cost you a lot. Keep in mind! The agents are really good at reading emotions. If they find that you’re impressed, they’ll surely get your pay more, and you don’t want that for sure. While buying a home, you need to act wisely. There’re tons of houses out there, and you just need to make sure you get the right house at the right price.
In some cases, you’ll surely find the houses that are really good and just what you’re looking for. But it will cost way out of your budget. So what you need to do in that case is, just leave it, move on and keep looking. Don’t force yourself to raise money and derail your finances in the future.
Check the Protection Clauses
This is something you can’t miss out. And this is where most of the savvy first-time buyers go wrong and end up long their money for no good. Here’s a rule of thumb for you! Don’t sign anything until you’re sure your interests are protected. Be mindful that the smart homebuyers always request the additional clauses to protect their interests. If an agent says that you can always ask for changes or an extension later, don’t get fooled by this trick. Things don’t work like that.
There’s no way you can ask for changes in the current contract. The only way you can get the changes done to an agreement once it’s been signed is to end the existing one and renegotiate the new contract. So make sure you have the protection clauses included in the contract.
SummaryDo you want to learn more about mistakes that people make while buying with real estate in UAE? Just check out the article now