Buying an apartment or house can seem like a daunting process. There are many considerations you have to make before such a big undertaking. This is more so if it is your first time shopping for an apartment. The good news is that it does not have to be so. Herein is a comprehensive guide on all the important aspects you need to know about purchasing an apartment.
For most people, the first huddle is discerning whether buying an apartment is a good idea. You may be wondering whether it is a great investment or how it compares with renting. Also, you may be undecided on whether to choose an apartment over a house.
The consensus is that buying is always better than renting. Most financial experts consider renting a liability. Once you leave a rented apartment, you have nothing to show for all the monetary costs you incurred. In the case of buying, an apartment will most likely increase in value over time. Having a great return on investment means you improve your ability to purchase another apartment.
Buying is also better due to some non-financial reasons. Due to the terms placed on rented apartments, renting can be restrictive. In many of the cases, you may not be allowed to renovate, change the décor or even have pets. Living in a rented space means your freedom is limited to some degree.
However, there are some unique instances where buying is not ideal. For instance, you will not realize the financial benefits of buying an apartment if you seek a short-term stay. Building equity in an apartment can take several years. You should reconsider buying an apartment if you often move due to work or other reasons.
There is the question of choosing to buy an apartment instead of a house. A good number of people are mainly interested in purchasing a house. However, several financial and non-financial factors can make buying an apartment the ideal choice for you.
One of the major factors is location. Buying an apartment makes more financial sense if you seek to reside in a city or near a city. Residing within a city can help you reduce commuting costs. It also keeps you within reach of the city’s amenities. Apartments are also generally cheaper than houses that are close to cities.
An apartment comes with less utility bills. Utilities such as air conditioning and heating are less costly with apartments compared to houses. In addition, the maintenance costs are also lower. Since apartments have less living space and lack features like yards, lawn, and outdoor spaces, you will not have to worry about extra maintenance.
If you decide that purchasing an apartment is the best option for you, the next challenge is landing an apartment that satisfies your needs. There are some of the considerations you should make to ensure a satisfactory purchase. The first is the reason why the apartment is on sale. If you are not working with a developer, knowing why the owner is selling is crucial to negotiating a good price.
Another vital consideration is the age of the apartment building. This will give you a rough idea of the maintenance needs of the apartment. Older units will require some extra work. You should also check out how long the apartment has been on the market. This information is important for price negotiations. In many cases, a unit that has been on the market for long probably has a high price tag.
It is advisable to inquire about the turnover of the apartment. There may be something off about the property if an apartment has been sold frequently. Always review the seller’s disclosure thoroughly. The information a seller puts forth regarding an apartment will reveal a lot regarding the livability of the place. Some important aspects to review include the Energy Efficiency Rating, pest inspection report, statutory warnings, and asbestos report.
If you plan on selling the property in future, assessing the real estate market in the area is crucial. You may be thinking of upgrading after a few years’ stay at an apartment. If this is the case, you should take the resale value of the property into consideration.
Have a chat with the neighbors, locals or business owners in the area. Inquire on the suitability of the location. Asking the local community will give you first-hand information on the property and location. Consider any outdoor factors that may affect your stay at the apartment. This can include sources of noise such as railway tracks, nearby highways or nightclubs.
You should consider the apartment’s proximity to important amenities and locations. These include your place of work, places you frequent, public transport facilities, schools, restaurants or stores. You should be able to see yourself enjoying your stay at the location. The general feel of the people and area will tell you if the community befits you.
The final step entails consulting your lender before making any offers on an apartment. Decide on a price range that is within what you are able to afford and remain true to your budget. Overall, purchasing an apartment does not have to be a daunting process. Always do your research beforehand and inquire as much as possible about the property.