Buying a new property can be a complex process as there are a lot of variables to consider before you invest. If you are looking to buy a property, you should take a look at the essential factors that you have to consider to ensure maximum satisfaction, safety, and elimination of all unwanted risks. Given the effects of climate change, developers are starting to make sure that their properties are eco-friendly. Canada is one of the leading countries for such efforts. These new condos in Mississauga, for example, were designed specifically for people to walk to and from important establishments as they are located near the main thoroughfares of the city.
To help you in making a good investment, here are the things you need to look out for when buying a property.
SCAN THE MARKET
As with other types of investments, the goal is to buy low and sell high. You are aware the real estate markets are highly volatile. To make sure a property is fairly priced, a real estate market analysis should always be performed before buying any potential property. This analysis in simple words will allow you to compare the values of similar properties in the area and come up with an accurate average market price. Let’s take an example, you are buying a house as a property investment. The smart thing here before you sign any documents is to consider how much return you can get on your investment in the long run. In looking for a new house or property in London, there are several important decisions you may have to make, the first of which is how close you need to be to the city’s center and accordingly do a market analysis. Some of the locations that attract a lot of buyers in London include Barking Riverside, Woolwich, Old Kent Road, Brentford and Bayswater. Simple pro tips here are to check– the current rental rates in a particular area, property appreciation value in the future, upcoming new developmental projects near the location, and the risks of real estate investment.
VERIFY LEGAL DOCUMENTS
When looking to buy real estate in London or any other city in the United Kingdom, you must consider not only the purchase price, but also potential taxes and fees. You should be aware of Stamp Duty Land Tax (SDLT) of the property you are looking to own besides other costs such as Conveyancing Fees to be paid to solicitor, survey fees, and mortgage fees, if needed. In an investment market riddled with possible fraud incidents, the buyer should conduct legal due diligence to ensure the existence of the seller’s title, the nature of the title and its marketability, and the seller’s ability to pass clear and transferable titles, free of hindrance. You should ideally verify legal documentation of at least 10 plus years. Such documentation includes – title documents of the property, nature of title, and the development agreement and power of attorney executed by the owners in favor of the seller. All the title documents must be duly stamped and registered.
Location is always a key consideration when it comes to property investment. A good location is an important factor for current and future profitability in real estate investing. Here are some factors to keep in mind while scanning for an ideal location: Proximity to amenities, green space, outdoor views, and the neighborhood’s security for potential residential property valuations. Closeness to markets, warehouses, transportation facilities, freeways and subways, and tax-exempt areas play an important role in property valuations.
This can be helpful for buyers of under-construction projects. A physical survey and confirmation of the property’s extent and dimension may be conducted by the buyer to assess the trustworthiness of the builders working on the project. Reliable developers, who aim for customer satisfaction, tend to update their buyers through letters, emails, apps, and social media pages, informing them about the completion of various phases. Most developers allow a physical survey to buyers during non-critical times of construction with prior notice. Try to amass as much information as you can before investing. For instance, if you are looking to get properties such as condos in Canada, see more here to get all the information that you can and do a physical survey of the properties. In the case of land, it is advisable to identify and demarcate the boundaries according to the legal documentation. Lastly, getting an expert opinion about the soil underneath is also highly recommended.
Security is paramount, everyone wants their investment to be safe and their loved ones to be secured. Therefore check the crime rate and the type of crimes with the concerned authorities before investing. Furthermore, to secure your investment in an apartment or land with constructed buildings, the new buyer should examine the building plan and layout plan sanctioned by the local municipal authorities. Buyers should examine approvals issued by the government for installing infrastructure facilities, water, sewage, electricity, environmental clearance approval, fire safety approval, etc. For all these approvals, the builders or sellers should provide legal documents from different departments, such as the Pollution Board, Environment Department, Sewage Board, and Traffic and Coordination Department.
These are 5 critical factors that can guide you before investing in any property. However, there are a few more things you need to take into account like the tax rate on the property which will differ according to the area. Ensure that all the clauses of the documents are read in detail and penalty clauses are understood before investing.