PROPERTY NEWS - Given the long-term nature of a property investment, there are some essential elements - both financial and emotional - that should be carefully measured beforehand to ensure that the you purchase a property that will meet your needs both now and in the future.
"Consider three main elements when looking at each property you view: functionality, cost, and enjoyment," says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
"If a home meets all the functional requirements, such as the number of bedrooms and proximity to your place of work or schools, then it meets the functionality criteria. Cost is not only the purchase price of the property, but also all the other costs involved in the property sale as well as all the day-to-day costs of owning the home.
"A home meets the enjoyment criteria if it offers what you'd like to get out of living in the home. If a home meets all these criteria, then you know you've fallen in love with the right home," he explains.
Finance
He notes that the biggest restriction when looking to purchase a home is affordability. "Financial restrictions could mean compromising on certain aspects, even if only for the time being. Buyers also need to ensure that they can afford to sustain the financial obligation before entering into the agreement. To assess this, make use of the resources available such as financial advisers, banks and bond origination companies such as BetterBond," says Goslett.
Location
A mistake many buyers make in this regard is that they focus on the home itself and compromise on its location. "However, regarding the appreciation potential of the property, this will end up hurting their back pocket," says Goslett. He recommends that it is always better to put location as a top priority and rather compromise on the property.
"While it is impossible to change a property's location, the home can be renovated or changed to meet the owner's needs," he says.
Renovation potential
"When it comes to seeing potential in a home for renovations or additions, ideally, the shell of the home should be well designed and laid out correctly. If you intend to add more rooms, then the current layout of the property must allow for that to ensure that there's not a disconnect in the flow of the design. In certain instances, it's better to walk away than try and correct a poorly thought-out floor plan," he says.
Enjoyment
Finally, buyers also need to consider both the current and future enjoyment of the home. "Buyers should sit down and determine what features they currently need in a home, as well as the features they may require in the future before they start the house hunting process. It can also be useful to create a wish list of features that they would love to have in a home, such as a walk-in closet or a freestanding tub.
"Even if the home does not yet have these wish list features, buyers should consider if it would be structurally possible to add these features to the home at a later date should they wish to do so," he recommends.
Once these all the various criteria are determined, it can be helpful to involve a real estate professional to help you find the perfect home, especially if there are no homes that meet your criteria on the various property portals.
"Real estate agents are often privy to listings before they are uploaded to a property portal. It is not completely unheard of to have a property sell before it even reaches the internet. Partnering with an estate agent allows you first pick of any suitable listing as soon as they enter the market," he concludes.
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