Things to Consider When Investing in a Home- Exercise Good Judgement, Acumen and Common Sense

There are several important aspects that should be considered when purchasing a home such as the location, state of the house and financing the purchase.

1. Location, Location, Location!
When investing in a home, one of the most important things that will continue to impact your life long after the purchase, is the location. The closer the location is to your work place; the easier time you will have. However, it must be acknowledged that land and house prices in Sri Lanka have skyrocketed in the past couple of years and thus, a good location that is within a reasonable price range is very difficult to find.

2. Decide: House or Apartment?
Because of the limited land and ever increasing demand for housing, many millennials are now opting for apartments in Colombo Sri Lanka as a solution to the housing crisis. The seemingly irremediable traffic congestion that haunts almost every major road in the city have further provided impetus to people opting for apartments in the city. Catering to this demand, numerous companies and entities have built, or are currently in the process of building apartment complexes such as Capitol TwinPeaks.

3. Find a Real Estate Agent
Once you make the decision as to whether you would prefer an apartment (in which case, you can look at locations within the city itself) or whether you prefer a house with a garden (which would require you to expand your search to beyond the Colombo suburbs). If you are looking for land to build a house or one with an already constructed house, the best course of action is to opt for a real estate agent. Such agents would have wide networks and will be able to provide you with greater choice. However, keep in mind that most real estate agents and intermediaries often charge a flat rate of 3% of the purchase price as their fee.

4. See as Many Houses as Possible
It is of ample importance that one sees as many houses as possible in order to assess whether it is suitable to their needs. When doing so, make sure to thoroughly inspect each house with regard to its amenities, rights of way and other important aspects. When you are very interested in a particular house, it makes reasonable and commercial sense to get a structural engineer to take a look at it if you doubt its structural integrity.

5. Figure Out How to Finance the Purchase
Purchasing lands with houses is a daunting task, especially in modern times when land prices are skyrocketing in Colombo. Therefore, make sure that you have sufficient finances available to purchase when you start looking to invest – do not wait until a good bargain arises to raise the finances required to purchase by selling an existing asset for you may not be able to secure the best price if you are selling in a hurry. Another option is to seek a home loan from a bank.

6. Make Sure that the Legal Aspects Are in Order
Prior to purchasing land, enlist in the services of an attorney-at-law to carry out title searches at the Land Registry and to obtain other relevant documentation. Fraudulent deeds are a common occurrence, especially in Colombo, and therefore it is imperative that you guard against such concerns from the outset itself.