Buying a house for my mum

How To Save Money When Buying Real Estate

11 April 2022 by Joseph Jennings

You will have to invest in the real estate sector at one point. You may be purchasing a home, business premises, land, or an apartment to rent out. This extract details some tips and tricks you could consider to help you save costs when buying property. 

Conduct Thorough Assessments

Given that you may be inexperienced in conducting real estate transactions, you should hire a real estate agent or conveyancer to perform the following assessments: 

• The property's actual value. It prevents you from purchasing an overpriced property due to impulses or emotions.
• The property's condition. You will spend significant funds renovating a property with defects that the seller did not disclose.
• The legality of the property. If you buy a property with legal issues such as flouting zoning regulations or disputes, you cannot claim compensation from the seller if the development is declared illegal.
• Your property rights. Some zoning regulations and easements prevent you from using the property as you intended. In this case, you could lose money since you might have to sell the property and buy one that meets your needs. 

Know When To Buy

As a buyer, you should take advantage of real estate market trends to save money and make a killing on your investment. For instance, property prices plummet during the low season. If you flip properties, you could buy during the low season and sell during the high season. If you are not in a hurry to buy a home, you could opt for off-the-plan buying. These are incomplete homes under construction. They are significantly cheaper than finished homes. Moreover, assess the upcoming trends in your locality. For example, if the area has a new tourist site, you could buy land and convert it into a holiday park. 

Save on Mortgages

You have several options when it comes to making savings on your mortgage. First, you must take the right mortgage. For example, if you intend to sell your current home after buying a new property, servicing two mortgages could drain your finances. As such, you should consider a bridging-finance loan that combines the two mortgages. If your real estate agent or conveyancer predicts that mortgage rates will drop, consider a variable rate mortgage that uses the prevailing interest rates when computing the monthly repayments. You should also send your conveyancer or hire a mortgage broker to negotiate the mortgage interest and terms. These professionals bring in many clients for the lenders. Therefore, they have the upper hand when negotiating interest rates. Remember, a small percentage discount will lead to long term savings since you will repay the loan over several years. 

Talk to a real estate agent to get further advice. 

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