In the article I share what I learned about Real Estate Loans. Owning your own piece of property is one of the best assets you could have. The benefits that are attached with the same are also quite a few. First of all, you have your own place to call your own on which you could do anything.
You can build a commercial building and rent out the space, or you could build your dream house. Applying for a loan from the bank is much easier when you offer your house as collateral. Then again, with the competition in the market, it is not difficult to secure a mortgage loan which can be paid back over a comfortable period of time.
Earlier there were some countries which were not considered suitable places for settlement but with so much of modernization taking place, people are now in favor of moving to countries away from home to settle down. For example, it was noticed that people in the UK, preferred to move to warmer places such as Spain.
Today the real estate business runs into millions worldwide. Couples would save up their pension money and then buy some property overseas. When the potential in the market was realized, land prices simply began showing a steady rise. The story is almost the same everywhere. Most properties are sold through real estate agents. Unless you are that certain of making a purchase on your own, going through a real estate agent makes more sense. You would be able to get a clearer idea about the plot of land, the locality and other details with an expert at hand.
If you are thinking of moving into business, you might want to buy a property for commercial development. There are some points you need to keep in mind however. Firstly, you need to understand how the real estate market works, and the general prices of land. You need to decide where you would like to purchase your land and then go a little more in detail regarding the price of the land. Property meant for commercial purposes can be slotted into different categories too for example single tenant property, multi rental properties etc.
If you need a loan to purchase the land, you may find that banks and other lenders would prefer to finance high end or more expensive properties so finding the right lender might take a bit of time. Most lenders prefer to finance one or two types of commercial properties rather than all of them. However, doing a thorough inspection of the land or building is a must before you purchase the property. Old buildings if not maintained properly can show signs of ageing too.
The paint peeling off and mould growing on the walls are just two examples of the same. Hiring the services of an home inspector could tell you a lot of things, like how sturdy the construction is and how much it would take to maintain the property. A seller may not always be honest and reveal everything there is about the property so make sure you do your own study.
Whether you are looking at properties for a personal use or for commercial purposes, there are eight steps which would help you in settling on the right property –
- Finding the right deals is important as they always have to be suitable to your needs. There are different ways to find a good deal – auctions , looking at papers, surfing through real estate magazines, and talking with people in the locality of your choice would help.
- Take a look at the properties that you are short listing. Doing some research about the property, meeting with the sellers, etc are a few ways in which you could do your own little background checks. Beware of properties that have been in the market for too long or which are being sold at too low a rate. There might be something wrong with them that you are not aware of. Most people find that taking time to note the pros and cons of each short listed property helps in better decision making. Knowing the plus and minus points also enables you to do a better job in negotiating with the seller.
- Although taking time to come to the right decision is always advisable, don’t take too long. If the property that you are looking at is in a prime locality, chances are that there would be other interested parties too. The seller would obviously settle for the buyer who makes his decision faster and shows ready money.
- Negotiation is often considered an art, and it is. Usually there are many offers and counter offers that are made, in the closing of a deal. At the same time, bear in mind the maximum price that you are willing to pay for the property. You should draw the line at a figure that you know you can afford.
- Do not forget a professional inspection of the property. Any property that you buy should be in a good state on purchase, it is your right to ask the seller to fix something if you feel that something is damaged. Most sellers paint the house before putting it on the market.
- Most properties may also need you to do a spot of renovation on it, so keep that in mind too. Of course it would help if you could do a bit of work yourself, but it is always best to take the help of a professional who knows the job well.
- Before signing any contract, read the terms and conditions properly. Provide all the necessary documentation and maintain a separate file you can refer anytime. Having a good rapport with the seller is always beneficial as you may need the help of that person for future also.
- If you are borrowing money to purchase the property, decide on a good reputed moneylender to give you the loan. Avoid any start up operations as they could be frauds instead.