With lockdowns and reduced production governing the world, economies everywhere are being sluggish, to say the least. Is it then the right time to buy a property? Can the current situation be considered more of an opportunity to go property shopping or more of a risky investment?
It is important to keep the prerequisites for any larger or smaller investment in mind: you hold a stable job/income, or multiple incomes and you have savings and can access them. See, resources and their availability are key if you wish to take this plunge.
First, determine the purpose of the property you are buying. Is it a raw piece of land? Or a house? An apartment or maybe a condo? What will you use it for? Are you ready to bear its financial expenses? Because you see, property costs you money in taxes and other fees, maintenance et al, unless you plan to make something with it: a recreation park, or an inn or simply a rental that will be an additional stream of income for you.
Then, make sure your financial assets permit this acquisition. It is normal that with prices down, and banks lending at lower rates, one could get excited about becoming an owner. This in no way prevents you from doing your homework and researching well the price range and the location, which need to all be following your determined purpose of this asset. Because, you know, it’s not a pair of socks or pants that you could ditch if you don’t like them anymore the next morning!
Once these points are cleared, visit the property you set your eye on and make sure it is in the condition you want it to be. Because any additional repairs or fund injections need to be accounted for. Also, remember to inquire about the title deed and related documents. You do not want to walk in on any war between bickering heirs, believe me! And if it’s possible, try to negotiate a discount. That’s always a win if you get it! It is crucial to recollect that you can and should always walk away if the presented deal does not seem like one to you or it doesn’t fit all of your criteria. Recessions happen all the time and prices fluctuate according to markets. And even if seizing a trade is on your mind, if it’s not exactly what you want, you better pass on it and be ready for your chance at some later stage.
