Joanna James
Real estate is a booming business and purchasing properties is known to be good for you financially in the long run. With that being mentioned, there is still a lot of factors to consider before making a purchase. Here are some factors to consider when buying a new apartment.
This goes without saying, you need to check the condition of the house before purchase. If you're paying good money for it, then it's always better to buy one with fewer flaws. It does cost good money to fix up a house. Get a qualified inspector to take a look around your house and come up with an estimate of the repairs you need to get done. Some you can fix on your own and some others you will require contractors. Get a good estimate of how much extra money you'll have to pay for the house for you be comfortable to live in. All the serious problems of the house that may contribute to the house not being safe, should be fixed outright. You don't want to move into a house that can harm you or your family. Also, in Colombo city, apartments are rising in most places, properties the likes of TRI-ZEN, offer comfortable homes.
So you're investing in a new home? Good decision. Every investor is different and they vary when it comes to goals on returns. However, there is a widely accepted fact that returns should adhere to the 1% rule. So what is this rule? Say, you buy an apartment worth $100,000 then it should ideally bring about $1,000 per month. This tally with a simple formula which is to divide the estimated rent for a month with the price of the house. Multiply this with 100% and you'll arrive at 1%. If it brings about this percentage, then you're good to go.
You can't survive anywhere without paying your taxes. So check out the taxes on a property before making an investment. If the taxes are high, then rest assured, it's going to start to take away your profits. Low taxes, on the other hand, will ensure you will enjoy your profits. Taxes are generally high around metropolitan regions and much lower in the rural areas.
Now, insurance too, has a way of eating your profits away. So you need to do this very carefully. Firstly, check out what kind of things you need to cover in your insurance policy. Secondly, check out the area itself, does it have higher insurance policies? This might be the case if you're choosing to invest in an area that is highly susceptible to natural disasters. If you find out that the house you're interested in falls into this category, well then, this house may not be worth purchasing. Once you've gotten these into order, the next step would be to start getting some information on insurance companies and compare their rates. Go for one that will be easy on your wallet.
Another important aspect to consider is what kind of neighbourhood the house is situated in. Look into this aspect very carefully and choose wisely.
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