Whether you are an experienced buyer or first-timer, there are a few things that you should be careful about, before signing the dotted line. If your finances are in place, and you’re ready to buy a property, that’s great, but if you aren’t, this post will certainly help you a lot in finding a good property within your budget.
If you plan on renting property in near future, then you must be very careful about choosing a tenant, insurance coverage, and other details. Before buying, you need to plan how much your monthly budget is, and how much you can afford to pay as down-payment. You will have to look at the other expenses such as getting the interiors, and work-work done after purchasing bare flat or a house.
Create a Wish List
You need to get some idea about the type of options that you would like to see in your next home.After making the priority list, arrange them, based upon what is important to you. If you want pool as well as outdoor kitchen, but adding both crosses your budget, then decide what’s more important, and bring down the cost factor accordingly. You can make tradeoffs after creating your budget, and the wish-list.
Make a Realistic Plan
It is imperative to be practical about what you can afford to pay every month as EMI. If you wish to maintain your current lifestyle, take all the factors into account, right from cost of your piano lessons, your sandals, groceries, down to occasional vacations, and include all of them in the budget plan. Getting preapproved mortgage loans can be quite helpful; however, just because you are sanctioned for assured amount, do not think that you need to add up that in your spending list. Do not spend more than 25% of gross earning on a loan payment and limit it to 20-30% on housing costs, including property taxes, insurance, mortgage, and PMI.
Budgeting for Your Purchase
Use a loan calculator to get a better picture of the pricing options. Apart from the down payment charges, you need to consider other expenses as well. You need to account for cost of a home inspection, property registration, brokerage charges (if any), and all the other expenses, which may add up to a considerable amount.visit this link to get latest news.
You’ll have to consider even the closing cost, such as lender fees, loan, and appraisal, which would vary on the loan amount. The standard closing price on a $200k mortgage would be around $3,750. Do not forget to include moving cost, which would depend upon the area. Keep 1-2% of your income for maintenance and repair. You should also account for utility costs, such as water bills, electric or gas bills. Before purchasing, get an idea about the standard bills in that area by speaking to a couple of home owners who’ve been staying there for past few years.
Down Payment Plan
Once you know your monthly expenses and closing costs, you can easily think how much you can afford to pay as the down payment. But, always keep some contingency funds, and don’t shell out all your savings as the down-payment.learn more detailed information at http://1800sellfast.com/
Hopefully, this basic guide would help you find your dream house, without breaking the bank!
Author Bio:- Raymond Hills is a serial investor, who has years of experience in buying and renting property and he knows how to deal with realtors, and sellers.
Many a times, landlords ask this question – what do the letting agents really do to be paid any money! Well, that may sound inappropriate to many, but this question actually is a fair one, in majority of the cases, wherein the letting agents hardly do any hard-work that they are supposed to do, and yet take their monthly charges. Nowadays, landlords are often seen complaining about the letting agencies they are working with, and explaining the kind of sub-standard service that they offer.
Top Reasons behind Poor Service
One of the biggest reasons behind this situation is many real estate firms have also started letting agencies to make sure that the money continues to flow in even when the sales are low. Because of this there is a growing number of inexperience letting agents who are offering their services out of desperation, which results in bad services given to landlords.
Finding a Competent Agent
The landlords often wonder how they should find whether an agent is competent enough or not. The fact is that it is not at all difficult to spot these incapable agents; all you need to know is the right set of questions that you should ask them.
Probe them about where they and their colleagues have got the training for letting jobs. Ask them about how they reference and credit check the tenants that search for houses.
Find out if they know anything about the latest laws and also ask what they do, so as to keep themselves updated. One of the important questions you can ask is about the services or help they would offer should a tenant stops paying the rent. Finally, ask them how regularly their companies update the tenancy agreements.
Checking the Fine Print
Apart from the regular questions, take a look at the agreement they normally use and go through all the business terms and conditions before you decide to hand over your property to an agent. If the sentences are not written in simple plain English then it is quite possible that the tenants would also have a hard time understanding it. This is yet another indication of a shoddy service. See if the agreement is over 10 pages long and if the charges are not mentioned in one page alone. A bigger list of charges means that you have to pay much more throughout the agreement than you would have to possible pay otherwise.
Spotting the Shoddy Agents
Bad agents normally advertise a smaller fee like 5% for their services. This does sound attractive at the beginning, but things go haywire very soon as it is close to impossible for anyone to give good services at such minimal cost. The catch here normally is that they charge a big fee for set up, and a small amount towards monthly maintenance. This way you end up paying more for services like EPCs, tenancy agreement payments, tenancy deposit charges, inventories, renewal fees etc.visit their official website for more details.
On the Whole
Bad letting agents are the ones that pass on all the problems coming from the tenant’s side to you, without actually dealing with them efficiently; but, the irony is that they basically get paid for handling all those issues!
This is why it becomes very important to be very picky before getting into a deal with any of the letting agents or letting agencies.
Author Bio:- Adrian Hill is an online marketer for Sothebysrealty.co.uk. Adrian is an SEO analyst by profession and enjoys writing on a wide range of niches including finance, health care, infrastructure, entertainment, real estate etc.