Buying house might be the biggest and most expensive purchasing in our life. But a house however is an investment as well. This is so interesting, and breathtaking, at the same time, even if you have much money. For the investment purpose, you must consider some things before buying house.
1. Keep your track record clean
You can borrow some money from the bank. But this won’t be possible if your name has been black-listed, for instance you have bad record in paying credit card. Remember, the banks connected and share information each other, under the central bank. So, before you buy your dream house, make sure there is no wrong information about your loan history or credit value error.
2. Do not hesitate to consult
Ask your friends, family, anyone you know, who had used loan service. Ask them to share their experience and give their reference about credible banks. However, you have a task to check and compare some offer from the loan givers. You don’t want to deal with troubles in the future, do you?
3. Buy when the interest is low
This is so logical. Some house developer put the higher price because its infrastructure has already been complete. The construction of highway, for instance, can increase the price of the house until 50 percents. That’s why, if there is a plan of highway construction in a housing area you search for, don’t hesitate to buy a house before the price increases so high. In addition, buy when the interest range is normal. Sometimes loan interest falls. It would be a sign for you to invest in property.
4. Be sure you have enough fund
Surely, you must pay the advance payment. For ideal plan, you must now have at least 20 percents from the total price of the house you want to buy. Plus, allocate additional saving.
You have to prepare budget for other necessity such as assurance, tax, and administration or consulting. This amount must be included in budget as additional payment every month, beside house installment payment. And, yes, there is also money for repairing and maintaining your house.
5. Analyze the house offer
Be careful of the house you will buy. It could be a confiscated house. Observe the history of the house. Prepare a little money to rent an expert who can evaluate and search for the reputation of the house (law condition). It is absolutely needed for you to get information about amount of fund that you need to repair the house. Beside, the house maybe has not have property certificate yet. Or the land is still in dispute. It will drag you in distress in the future.
Last but not least, do everything you can to increase the investment. Your goal is to resell the house, isn’t it? Those things are choose the house which price under market price, buy the house from someone who really needs money, and choose the good location such as near public facilities or not in disaster area.