Are you thinking of buying your first home soon? Great, this is a crucial moment in your life and a very important decision!
But before officially signing the promise to purchase, it would be better to check these essential elements (yes, yes, even if houses are selling at a crazy rate now!), In order not to have any unpleasant surprises in the coming years.
Here is all our advice to follow to the letter … for a successful purchase!
Target and evaluate the property
- Do not go alone for visits . To be effective, it is better to have someone accompany you first. It is always useful to take advantage of a double (or even a triple) look at the property in question. If the person is used to it (or even if it is a professional) it is even better: you will thus benefit from his know-how and his knowledge.
- Take your time during the visit . The individual or the agency may try to rush you during your visit (other appointments follow …). However, try to procrastinate. You must indeed take the time to check a certain number of “details” such as plumbing, floors, ceilings, ventilation, windows, electricity or even insulation. You won’t do anything right in a hurry!
- Do not be mistaken about the condition of the property . One of two things: either you want to buy something old to renovate, or you prefer to buy something new, where you will just have to put your suitcases down … In any case, you should know exactly where you set foot … The trap to avoid? End up with unforeseen work (and therefore costs). You can also calculate the house price with the help of a house price calculator.
- Request the technical diagnostic file as soon as possible . Usually, the latter is given to you at the notary, but nothing prevents you from requesting it earlier (during the visit or when signing the compromise). The purpose of this file is to verify the security of the accommodation (asbestos, electricity, lead, gas, etc.). It is therefore important to be able to study it closely.
- Take advantage of the withdrawal period . Very often, agencies and individuals put pressure so that the property sells quickly. So you may have to make a buying decision quite quickly … if you don’t want someone else to do it for you! Fortunately, after signing the sales agreement, you have 7 days during which you have the legal right to withdraw. Take the opportunity to check certain points that you will not have had time to check beforehand.
- Check the environment . Take advantage, for example, of the withdrawal period to return to the neighborhood. Check, for example, that this place where you are going to live corresponds to your expectations (spend the evening in particular to see if there are no noisy bars for example). Also ask the neighbors how life in the neighborhood is going. In short, do your little personal investigation and sift everything: shops, transport, schools, neighborhoods …
- Revisit the good . Likewise, once your purchase decision has been made and the compromise signed, nothing prevents you from asking to revisit the property. A 2nd visit (see a 3rd) will allow you to go through every nook and cranny of the accommodation.
- Go to the town hall, to the town planning department of your city . Thanks to this little check, you will know what is planned in terms of constructions in the district. A green park or a new building under your windows? Better to be warned to avoid disappointments …
Define your budget and financing
- Inquire about charges . If the property you want to acquire is in joint ownership, check the charges inherent in the building (elevator, caretaker, etc.). Likewise, try to find out a little more about the state of mind of the co-ownership: have work been voted, is a facelift to be expected in your budget? To do this, ask for the minutes of the general assemblies.
- Check the tax charges : property tax, household waste collection tax, residence tax: contact the tax services to find out their amount or ask the seller himself, who will provide you with information.
- Compare the credits . If you need to take out a loan to acquire your property, shop around the banks to find the best rate. Likewise, try to visualize what your loan will represent in the long term. It is important to know if you will be able to really insure, beyond the usual calculations that the bank will make on its side to allow you to borrow.
- Study credit insurance . The latter aims to take over if you can no longer pay your monthly payments to the bank (unemployment, illness …). So study the conditions carefully to check what is covered … and what is not!
- Negotiate the price of the property . To do this, try to find real objective arguments (old windows, poor insulation, etc.) aimed at lowering the price. Analyze the weak points of housing and use it to obtain a rebate …
- Negotiate agency fees . If you go through an agency to acquire your property, try to lower the costs. An agency always starts by lowering the price of the property, but not its commission. It is not always easy, but who does not try anything …
- Keep value for money in mind . If you’re about to shell out $ 300,000, you might be telling yourself that you’re not close to $ 1,000 or $ 2,000. Do not lose sight of the fact that even 1000 $, it is still a sum. When it comes time to spend them to pay your annual taxes, for example, you’ll be happy you thought about it!
Author Bio: Jonathan is Founder of SPV Mortgages. He can help you find and secure the best limited company mortgage options to push your property investment dreams forward. As specialist mortgage brokers with over 10 years of industry knowledge, he has helped experienced landlords and first-time investors across the country; saving you time and money in tracking down the best rates.