Things We Should Keep in Mind before Buying A House
Published On: 18th February, 2021
Mr. Rahman, 40, has wanted to buy a house for quite some time and he has been saving for it as well. He has looked into about 15 websites and visited more than 30 houses over the last 2 years. However, he was not able to buy any. He faced a number or problems while looking into the apartments. Either he did not like the design or the flat was way over budget and some times he just did not like the neighborhood. Mr. Rahman thinks that maybe he will never find the right house for himself.
Buying a house is an important decision in an individual’s life. It costs a significant amount of money and also it takes a lot of time in order to search for an apartment. This process can be especially difficult if we are unaware of the challenges that are associated with buying a house. A buyer should keep in mind that buying a house requires a lot of preparation. It should not be done in the spur of the moment. So, what are the things that we should consider before buying a house?
1. The purpose
The buyer should first decide why he/she wants to buy the house in the first place. Does the individual want to rent it out or does he/she want to live in that house? It’s an important decision because the purpose will hugely influence the other factors associated with buying. If an individual wants to keep the house for himself then he should pick a neighborhood which he prefers. Some neighborhoods are designed to be residential areas, buying a house there would be a wise decision. However, if he wants to rent it out then maybe he should pick a neighborhood where the living costs are cheaper and there are facilities nearby which make the area eligible for a tenant. For example: people are more willing to rent houses when there is a reputed school nearby. Families move in the areas near a school for a few years and then prefer to move back to their old places. Therefore, the purpose will ultimately decide what other factors we must consider.
2. The Financing
How one should finance the cost of a house is also extremely important. Nowadays there are a number of banks who are giving out loans specifically for buying houses. However, one must consider if he/she would be able to pay back the loan in time. One should also calculate the proportion of the amount of money which will be invested from his/her own savings compared to the amount which will be invested via debt financing. At present, individuals can also pay back the loan in installments which makes it easier for them to avoid defaulting the loan. Apart from the cost of buying a house, there are a lot of costs associated with maintaining the house. Renovating the house, service charge, utility bills etc. are only some of them.
3. The Size of the Apartment
The size of the apartment is an essential aspect which we must keep in mind. The size that we want to buy actually depends on our preferences and budget. An individual who has a big family will naturally prefer a larger house if he has the means to afford it. Apart from that, the price per square feet is an important factor which one must keep in mind. We have to compare the price per square of feet of one area to another and see which one offers a better deal with more facilities. For instance, an apartment near a famous hospital may cost more as they are more in demand. Therefore, the price per square feet will be more than an apartment which is, say, in a remote area with minimal transportation and healthcare services.
As mentioned earlier, location of an apartment determines the price of it. However, other factors can influence location preferences as well. For instance, a person will prefer his/her house to be near his/her work place. So, in that case if an individual has to attend his/her office in Uttara then he/she will probably prefer an office near that area. As traffic is increasing in Dhaka every day, its beneficial to have the work place near where a person resides. Also, the availability of shopping malls, grocery shops, schools and hospitals play a major role in increasing the value of a location.
A person who wants to buy a house should ask himself if the utility bills make sense. Sometimes the service charge of the apartment may seem a lot more in comparison to the services actually received. We have to make sure to ask our real estate agent the exact amount allocated for each service so that we can keep track of our expense. We should not have to pay for a service which we are not receiving.
6. A Trustworthy Real Estate Agent
We also have to make sure if the real estate agent is worth trusting or not. In order to do that we must check if the real estate company has an office and a proper website to verify if they are indeed a legitimate company. One can also take advice from his/her friends and family members who have recently bought a house. A good real estate company can make your task a lot easier. A bad one, however, can be a waste of your time and money.
Buying a house is a huge decision for a person. So, we must make sure that you have all the necessary information before investing such a big proportion of money.
Kriti Promiti Reza
Hassan and Associates Limited