When looking to buy a property it's important to keep a level head and not rush into a real estate purchase that could lead to trouble. Below are some tips that may help you make a better decision when buying a property.
1. Be clear on your needs
Before you start looking for a property, form a clear idea of exactly what you want and need. This applies to all property purchases, from investments to owner-occupied homes. Write down a description of the attributes that you believe are important in a property and then start looking for homes that match that description. By doing this you can reduce your risk of being sidetracked by properties that don't suit your needs.
2. Be clear on your budget
Budgeting is a vital part of buying a house. Make sure that you know your financial limits before looking at a property. It's also important to have a contingency plan in place for a scenario in which interest rates rise or an income is lost. By having a sound budget in place you may be able to avoid the heartache of an unaffordable mortgage.
3. Plan for the long term
Strong price growth in many areas over the last three years has led to some people trying to pick the top of the market and try to re-enter after a slide. I prefer to think of real estate as a long term investment. By purchasing real estate for the short term, you may increase your risk of missing out on the benefits that real estate investment can bring.