FIVE REAL ESTATE NO-NO’S
PURCHASE PROPERTY WISELY: AVOID real ESTATE MISSTEPS WITH THESE TIPS
Buying property can Be nerve-wracking, what with all the details to check before plunking down hard-earned money. So, before you sign any paperwork, be aware of these five common real estate mistakes—and how to avoid them—as advised by real estate brokers.
1. NOT DOING YOUR RESEARCH. according to real estate broker elvin ocampo, one of the most common mistakes when buying previously owned property is not checking with the registry of Deeds if the title is “clean.” This means that the tax declaration is updated and real estate taxes have been duly paid. aside from taxes and title, buyers should also check if utility bills have been settled. “i personally encountered a case where the water bill still had previous balance to be paid when the client and i bought the property,” shares broker alan Bautista.
2. IMPULSE BUYING. You have to take a long, hard look at your finances before plunking out cash for a property. otherwise, you might be biting off more than you can chew. The rule of thumb is that your mortgage should not cost more than approximately 32 percent of your gross monthly income. “Double-check the computation for all the payments required for a transaction,” adds elvin.
3. BELIEVING IN FALSE ADVERTISING. Don’t get tempted by the “no down payment scheme.” in reality, this scheme only means that there is no lump sum amount required for the down payment, according to broker rochelle granali. “This is because the down payment of the property is stretched out to the allowable term of the developer. Developers usually require twenty percent down payment, and the rest can be bank- or pag-iBig-financed. in the ‘no down payment’ practice, buyers are allowed to pay the twenty percent in increments over a period of several months or years. it is only when that twenty percent has been completed and when a loan for the remaining eighty percent has been taken out that the buyer can move in to his property. So essentially, there still is a down payment required.”
4. NOT HAVING FORESIGHT. not considering your needs for your space can be a costly mistake. assess first if you and your family’s activities and lifestyle are best suited in a vertical space or suburban village. “The thing with property is that you’ll use it for long term. it’s something that should grow with your needs. The space should allow additional alterations eventually,” adds rochelle.
5. OVERSPENDING. You may think that installing a Jacuzzi or bar in your home will bring up its market value, but a move like that can hurt your prospect since a potential buyer may deem that upgrade unnecessary. “Spending more than you can afford is also another mistake,” cautions rochelle. investing in quality materials and fixtures for the hardworking parts of the home, such as the kitchen, is better than spending for recreational additions that not everyone will appreciate.