Tuesday, 14 July 2015

What to consider before renting or buying a house


 
Investing in real estate has proven to be profitable – however, a good knowledge of what to buy or how to invest in the property market is crucial to avoid unwanted expenses in the future. Lamudi Nigeria lists a couple of tips and ideas to consider when planning to enter the property business.

Your budget
Set yourself a manageable budget and stick to it. Agents usually market rental properties by stating the yearly rental price. For those who want to buy, be clear about what type of property you want. Is it for personal use or investment purposes? Try not to be tempted to look at properties beyond what you can comfortably afford.
In addition to your rental costs, you will also need to budget for other related expenses. These might include service charges if the property is in a block of flats or on an estate, so clarify with your agent or landlord whether they are included in the rent or are an additional charge. Other expenses to consider are the refundable deposit, moving costs, decoration of the property, furniture, or generator.

Location
There are plenty of factors to consider when thinking about the location of a property. It is important that you prioritise what is the most important to you in terms of location before starting your search, as this will save you time in the long run. For example, how important are the local amenities to you?
Check the distance to your workplace and schools, access to shopping areas, and public transport, closeness to friends or relatives. It is worth prioritising those and any other factors that may be relevant to you to help you determine your ideal location and to make your search as clear as possible.

Other considerations
There are plenty of options for those looking for property to rent or purchase, in terms of the types of accommodation. Much will depend on your personal circumstances and your life stage, i.e. position at work and most importantly your purchasing power.

Searching for the ideal property
In addition to the internet, which has much information within a mouse click, there are a number of other ways you can search for property. These might include newspapers,  but be aware that by the time many papers are printed, some properties may have already been let. You can also contact well-known developers or estate agents directly.
Call the estate agents and ask for details of relevant property, and if it sounds interesting arrange a viewing. It pays to contact a few agents to give you the best chance to find the right property. Drive around the area you are interested in and have a look at any “To Let” or “For Sale” signs and write down the contact details. Keep in touch with agents regularly, as rental properties tend to come and go quite quickly, particularly in some popular areas.

Costs
Be aware that once you have found a property, agents and solicitors will charge you a fee. These can range from five to 10 percent of the total costs depending on the agents, the property and the location. Try to establish and negotiate these costs with the agents in advance as they may vary.
Overall, before you begin the task of viewing a property, make sure you clarify with the agent that the house or flat meets your requirements, the costs and the fees so that you would not waste your time.
By Yinka Kolawole
 

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