Are you thinking about investing in a new property? Perhaps you have outgrown your old home and it’s time to move on thanks to a growing family. Or, you could be exploring it as an investment opportunity and if that’s the case then this might be the second home that you own. You may even be looking for somewhere that you can retire too or potentially a holiday home. Don’t forget, a holiday home can be a great investment as long as you are able to attract the attention of people who are keen to stay there. But before you invest in a new home like this, there are a few questions that are worth asking. Let’s run through some of them.
Is It The Right Time?
With the coronavirus pandemic hitting the world hard and having a crippling impact on the economy, it’s only a matter of time before house prices start to collapse. There was a reason why the governments decided to freeze the housing market and it wasn’t all to do with social distancing. They were protecting both buyers and sellers. Now, if you’re thinking about buying your first property and you have the money saved, then the end of the pandemic could definitely be the right time. If however, you need to sell your property, then you might get a lot less than you’d like.
There’s also a significant risk of a mortgage shortfall if you buy at the wrong time. If you buy too early before house prices drop, then you could purchase a property at more than it’s actually worth. This could mean that you end up losing on the house when it’s time to sell again because the mortgage costs more than the market value of the property. So, you definitely need to explore the market and decide whether it is the right time to buy.
House Or Apartment?
You may also want to think about whether you should be purchasing a house or a property that’s part of a building. For personal reasons, an apartment can be better. For instance, if you’re thinking about retiring, then you might like the security of knowing that you’re living in a building that does have CCTV systems and key card locking systems as an example. If however, you are thinking about starting a family, a house can be more ideal for you. You’ll be able to get a lot of benefits from this including more space and, perhaps most importantly, a garden where the kids can play.
Of course, each option also provides benefits as an investment opportunity. Arguably, an apartment can be a more secure choice if you are thinking about renting it out. It means that you don’t need to worry about issues with property damage, particularly to the exterior. This can help you avoid a headache in the future.
Buy Or Build?
Right now, you are probably set on buying your new home, but could the building be the better choice? It could be if you have a specific idea about what you want from the new home that you’re thinking about investing in. For instance, you might love the idea of a long driveway as well as a walk-in wardrobe. You probably won’t get both these options even if you buy a new build. But you can if you work with a custom home builder.
Alternatively, you could be keen to get a property in a particular location. There may not be any properties available when it’s time to buy but there might be land up for grabs. The building isn’t without challenges, but the main point is that you find the right contractor. They need to be able to work within your budget and be able to provide the level of quality that you want.
What About A Fixer-Upper?
Of course, if you are focused on buying as an investment opportunity, then it could be worth considering opting for an older home rather than a new build. Older homes are available on the market at lower prices and you can save a fortune with this decision. You just need to make sure that the issues with the home aren’t too large for you to handle. Problems with pipes and wiring can lead to expensive repairs where you’ll essentially need to pull the home apart. Structural problems fall into this category too.
We hope this helps you understand some of the key considerations that you should keep in mind before you purchase a new home on the market.
