Buying a home is a tough call for many of us. Considering the fact that a home is an investment for a lifetime, there are many aspects that factor in when making the decision to purchase one. The COVID-19 pandemic has changed the world of real estate in many ways. It has deeply impacted the way people view and want their homes and in the extension, the purchase of the property. As the vaccinations have come out and there have been cures closer than before, the world finally seems to cling on to a new ray of hope.
However, the uncertainty still looms large over us, in terms of work, schools, transport and it is obvious that homebuyers can change their views of buying homes during this time. The pandemic has somehow swayed the way real estate is bought, without the dips in numbers. With work no longer being the sole reason to keep professionals living in cities, home buyers are now viewing owning a property very differently than that from 2 years ago. As drastic and unpredicted changes have become the new normal, let’s discuss 5 things a home buyer should have in mind when looking to buy a flat amid the covid 19 pandemic.
5 CONSIDERATIONS TO MAKE BEFORE BUYING PROPERTY AMID COVID 19 PANDEMIC
The pandemic has temporarily moved people away from the crowded cities, but it hasn’t removed the excitement of living in a city from people. Big corporate houses are incurring the benefits of remote working and work from home positions. Not only are they enjoying increased productivity, but have also saved huge office infrastructure costs. But as the novelty of working from home has worn off and the carefully constructed lines between work and home life have become blurred, many professionals just cannot wait to get back to the office. Though living away from the cities may be a preference for a few, it is not necessarily an idea everybody loves. Cities still have certain advantages when it comes to reputed educational institutions, lifestyle and health infrastructure, ease of living and much more. This, however, does not suggest that smaller towns and villages aren’t ideal, but the investment people make in real estate in cities is going to reap in future.
Good floor plan
Working from home, if not all days of the week, is still a possibility for many. When buying a flat, always ensure that the home utilizes the space well. Today smartly designed homes have dedicated spaces for your everyday life and choosing this kind of home space would be a good investment. You must always remember that a large home doesn’t necessarily use its space well, while a small home can also be smartly designed to utilize the available space.
Integrated townships to be in preference
Be it a city or town, when you are choosing your dream home, try to go with an integrated township that offers multiple amenities. While going out may not always be a safe option yet, an integrated township can help to take your mind off of work stress and offer a distraction of going out being a great option to consider. Choose homes that include amenities that help to promote your physical and mental well-being. A lush green garden, well-equipped gyms, swimming pool, pathways etc are a few significant add ons to keep in mind while buying a home.
The idea of space utility has radically evolved and undergone many changes since the onset of the pandemic. For some, it meant aesthetically decorated interiors, and for some, it meant the luxury of outdoor spaces. Being home for prolonged hours can make one really yearn for outdoor spaces. So make sure you take time to research well about the project you are looking to invest in for its space management. Make sure there are sufficient spaces between the various blocks of the development. Outdoor amenities like lush green gardens, swimming pools, play areas, and walking paths can help you de-stress.
Choose a reputed builder
It is of utmost importance to invest in flats for sale from reputed builders especially now. And this mostly makes sense if you choose to book an under-construction home. Though the government has allowed in-situ construction to continue during the lockdowns, only reputed builders can withstand this financial strain. Even if you are willing to opt for a ready-to-move-in home, the legal procedures during these times of crisis can be a tad bit difficult to handle. So it would always be a safer option when you will receive your home from a real estate company that knows the ins and outs of documentation processes really well.
Though it would be wise to postpone site visits given the Pandemic situation, if you are looking to buy homes or flats for sale now, do take utmost care while stepping out. Always wear a mask and sanitize for your own safety and also that of the others.
FAQ’s about “What is the biggest mistake people make when investing in real estate (rental property)?”
People often make mistakes while buying a rental property. You can learn from those mistakes and avoid them when you plan to invest in a rental property.
Buying too large/too many rental properties
It’s always best to start low. Buying a large property or too many properties can increase your stress because of increased property taxes, exorbitant maintenance costs, more rehabs when tenants move out, etc. If you are a new investor, it is always wise to start with one manageable property and grow from there.
Buying property with no cash flow
Not running the numbers and buying a property with no cash flow can be one of the biggest mistakes an investor can make. If your property does not produce cash flow, then there are chances you can lose a lot of money.
Not having enough reserves for maintenance and vacancies
As per experts, it is said that investors must at least have a year of cash reserves in their bank in order to cover a rental property mortgage plus maintenance expenses and vacancy. If you don’t have a backup plan with enough cash reserves on hand, then that’s a big mistake.
Investing based on appreciation
Rental property values fluctuate year over year. In a down market, there is a possibility for a house to lose value. There may be untoward eventualities and unexpected situations which could force you to sell your property at a below-market price which could cause you a loss on the property. Therefore it is recommended that investors always buy a property based on cash flow and not based on expected appreciation.
Missing contract items
It is always advised that all the paperwork, agreements and contracts are meticulously read thoroughly. Although it is a tedious job, one must take time to make sure all requisite clauses are included in the contract prior to signing it and if need be, you can take the help of a lawyer.