Buying the ideal property requires care. Do you know how to analyze a property to find the best options for you and your family?
The desire of millions of Pakistanis is to get out of rent. If that’s your will, know that you can get the idea off the paper and start making it happen right now.
How to do this? The acquisition of your own home involves the consideration of a series of elements. And that’s what we’re going to talk about in this content.
The objective is to show you a step-by-step guide to acquiring the property you’ve always dreamed of! To do this, we will go through the following points:
- Plan yourself financially;
- Study the real estate market;
- Understand how to choose the best property for you;
- Analyze the best ways to acquire the property;
- Inquire about the necessary documents
With this knowledge, you can select that property that contains the desired characteristics and buy it without mishaps along the way and with more security.
Is it what you want? So, happy reading!
Plan Yourself Financially
Financial planning is important for anything we do in life. This is also valid for the purchase of a property. Whether it’s to make a down payment or to make sure you’re able to pay the mortgage installments, planning to take on this responsibility is key to your personal success.
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This planning is also necessary to acquire the property of your dreams. This is how you avoid impulse buying or settling for something that isn’t quite what you want.
What a lot of people still don’t know is how they should plan their finances to ensure everything goes well. Here are some tips that will help with this process:
1. Invest Everything You Save
Money stopped is synonymous with loss. It’s important that you save monthly, but leaving the money kept at home, applied to your checking account (with no income), or even savings (which have a low return) are bad ideas.
Stipulate a monthly amount or percentage of your income to save. Then define an investment. It is recommended to apply in fixed income because the chances of loss are minimal, and there is a stable income. A good option is Treasury Direct bonds, which are those sold by the Federal Government. They offer the same security as savings but a higher return. In addition, there are options with good liquidity; that is, the asset can be quickly converted into cash, in addition to good terms.
2. Control Your Personal Expenses
This tip will help a lot to save money for the previous step. The idea here is to organize your personal and family budget, check where you are investing your income and what are extra and superfluous expenses that can be reduced. Set a goal and focus on buying the property.
Write down all monthly expenses on a spreadsheet and evaluate what is relevant and what can be reduced. For example: if you don’t give up cable TV, make sure you can’t replace some products at the supermarket to spend less or even opt for a streaming service.
3. Pay Attention to Extra Expenses
The purchase of a property has expenses that go beyond the monthly payment of the installments. There are expenses with documentation, transfer, Urban Property and Territorial Tax ( IPTU ), taxes and bank charges, condominium, and insurance, among others.
Take the opportunity and separate an amount to cover these expenses. Compare with your monthly budget and see how much of your income will be committed to expenses related to the residence. If it exceeds 50%, think again.
4. Evaluate the Price Difference Between Locations and Properties
The ideal property already has a specific configuration in its head. But it won’t always be possible to get everything you want. Have alternatives, such as other locations and properties with some different characteristics. This can cause the price of the good to drop significantly.
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Also, analyze the differences in values between new and used properties. In the second case, it is necessary to check if the property is very old and how its hydraulic installations, slabs, electrical wiring, coatings, floors, and structure are. Sometimes it might not be worth it.
A property in the plant has the advantages of increasing value as soon as the work is finished and presenting fewer structural risks. The care you should take is to choose a reliable construction company with a good reputation in the market.
In fact, the real estate market should be studied in more depth so that your purchase is the best possible. See what you need to check next.
Study the Real Estate Market
Planning must go beyond finances and reach the real estate market. Knowing well the city in which you will acquire your ideal property is essential to discovering good opportunities and the most valued neighborhoods.
However, the market is quite dynamic, and keeping up with it is not an easy task. Take advantage of this characteristic to your advantage, as this dynamics means that a good missed opportunity can be better used at a later time.
How do you know if the available opportunity is right for you? A relevant tip is to ask yourself if you imagine yourself living in that place within 5 to 8 years. Consider situations that may occur and interfere with the use of the property, for example: marriage, children, and work, among others.
The trick is to always think about the long term. This doesn’t mean that you won’t be able to sell the apartment sometime from now, but that it should meet your needs for a certain period of time.
See if there are planned infrastructure works in the desired location and think about the impact this will have. For example: having a subway station close by is good, but if it is next to the apartment, the noise can be high.
Another important detail is the state of the economy. If home prices are on the rise, it might be worth waiting a while to get a better property. However, it is possible to find good options at any time. Just be patient.
To help you even more in this endeavor of choosing the ideal property, we will cover more relevant tips below. Just keep reading!
Find Out How to Choose the Best Property For You
Choosing the ideal property can be time-consuming, but it is worth investing that time to find the property you want. The point is that you need to put in the time and effort to come up with the best option.
Therefore, the following actions are recommended:
1. Evaluate in Detail During the Visit
The visit is the key moment to verify any problems or inconsistencies. This is also the time to measure the rooms, check if the furniture will fit and what the positives and negatives are.
Take care not to be impressed (positively or negatively) by the decor. Remember that you are the one who will fix everything. So imagine your decorating style.
On a second or third visit, it is recommended to go with an engineer or architect to identify possible cracks and/or excess moisture. Also, make sure the bathroom and kitchen are well ventilated.
2. Visit the Property at Different Times
Visits should take place at different times of the day because this makes it easier to look for issues and allows you to be more confident in your decision. See the noise level, ventilation, incidence of sun, and any other aspect that you consider relevant.
3. Consider the Area of the Apartment
A mistake that is usually made is to evaluate only the layout of the rooms, not the total area, or the size of the apartment. After the move, it is possible to adjust the decor in the way that looks best and, having space; it is easier to organize.
4. Analyze the Characteristics of the Region
The city is constantly developing. Research if there is any region that can be valued in the coming years. The trend is that these regions can also progress and increase the value of the goods.
The points to note are:
- Address: a good location is the one that is best known and that is easy to get to;
- Access: The location must allow access by car, bus, subway, or train. Check for points and stations close to the residence because this adds value to the property;
- The vocation of the region: the streets and avenues known for having commercial activities require you to adapt to them, that is, don’t be bothered by the noise, enjoy the movement, etc. Otherwise, prefer a more residential street;
- Surroundings: Nearby locations can indicate the possibility of flooding, precarious infrastructure, urban violence, and other negative points. They indicate that the region is or will be devalued. On the other hand, it is positive to be close to supermarkets, stores, malls, and other similar establishments.
5. Enlist the Help of Brokers
Brokers are specialized professionals who can collaborate a lot in the search for the perfect property. Specify the characteristics you are looking for and make it clear what you can give up.
If the property is used, ask why sellers are leaving, what the area and neighborhood are like, and if more people are interested. Establish a relationship of trust because this will facilitate the process of buying the perfect property for you.
Once you’ve found the property you want, it’s time to think about the payment. We will better understand the available modalities in the next topic.
Analyze the Best Ways to Acquire the Property
There are two main ways of paying for the property you are going to buy. Your choice depends on your financial condition and the rush to acquire the property. Check out the modalities offered and the characteristics of each of them:
This is one of the most adopted modalities because it allows you to have quick access to the apartment and pay the amount of the credit contracted in several installments. Financing can be done with a construction company or with a financial institution.
In the first case, there is less bureaucracy, and the process is easier. The payment term, however, tends to be shorter, which can increase the value of the installments.
In the second possibility, the property is paid off in up to 420 months (35 years), but it is necessary to deliver several documents, and this cadastral analysis process can be a little time-consuming.
In financing, you need to be careful with the embedded interest, which can considerably increase the total value of the property that is actually being paid.
Another relevant detail is the entry, at least in bank financing. The amount to be used in this first moment varies according to your income and the value of the property. As the installments must correspond to a maximum of 30% of your income, you may be asked to pay a significant amount in cash. So, you need to prepare.
2. Cash Payment
This is the best of all worlds because there is no interest and it is still possible to negotiate a discount on the amount paid. The problem is that it takes longer to make the acquisition, as it usually takes several years to save money.
The delivery of the property is quite fast, but you must have a lot of discipline to save as much as you can. It is worth thinking about investments to make money saved pay more.
If you can wait, it’s worth paying upfront. Otherwise, organize yourself and finance. Just gather the documents and deliver them to the bank. Still don’t know what you need? Follow along with the next topic.
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Inquire About the Necessary Documents
The decision for the ideal property was made. Now it’s time to gather the necessary documents. Generally speaking, the buyer needs to deliver:
- copy of CPF and RG (or driver’s license);
- proof of address;
- proof of income from the previous three months;
- marriage, stable union, or birth certificate (if single);
- income tax declaration;
- work Card and FGTS extract (if used for purchase)
If there is a spouse, he must also deliver copies of the documents. In turn, if the buyer is self-employed, it is necessary to prove income through a service provision contract, income tax declaration from the union, or Proof of Receipt of Income (Decore), which is provided by the accountant.
In addition, there are documents relating to the property that must be gathered and analyzed. They are:
1. Updated Registration
The registration is seen as a kind of birth certificate of land, presenting all the basic information for that place to be correctly identified in a legal way.
This document is obtained at the registry office along with a certificate of encumbrances. The idea is to identify whether the property is part of a lawsuit (which would make the sale unfeasible) and analyze the characteristics of the property, such as:
- registration of purchase and sale;
- ownership changes;
- type of construction performed;
- proof of ownership;
- possible changes made;
- construction registration
Soon after the request for the updated registration of the property, it is possible to check other information, such as:
- the localization;
- the footage;
- improvements and other observations
The updated property registration is issued by the Real Estate Registry Office in your city.
2. Tax Status Certificate
This document is obtained from the City Hall and ensures that the property does not have debts with the municipality, including the IPTU. There are cities where this declaration can be issued directly over the internet.
3. Declaration of Non-Existence of Condominium Debts
This certificate is verified with the condominium administrator or the trustee. As the condominium debts are from the property, the new owner must bear them. Therefore, it is worth checking this question before buying the property of your dreams.
This change guide has taken you through the steps necessary to make the ideal purchase. It all starts with financial planning and studying the real estate market.
After analyzing these aspects, it is time to visit the property at different times and evaluate the most varied details. Select the perfect property for your situation (such as country side farms) and then choose the best payment method and deliver the necessary documents.
Finally, don’t forget to count on a quality real estate or construction company. Following these tips, you will be successful in this choice, and you will be much happier in your new home!