Investing in the real estate market is a common desire among most Pakistanis, especially due to the security and excellent profit possibilities that the acquisition of a property can provide. Faced with this reality, knowing the worst mistakes of those who want to buy their first apartment is essential.
While the acquisition of a property with good qualities can be a great alternative to generate equity and gain more financial strength, wrong choices are capable of undermining the budget and bringing a huge headache in the future. Check out the content below and find out how to avoid this!
Not Having Good Financial Planning
Definitely, one of the worst mistakes of those who want to buy their first apartment is not doing excellent financial planning. This is very important, especially considering that this is a high-value transaction, which can impact the budget for years or even decades.
Below, check out what you can’t do about financial planning.
Not Having Clear Goals and Objectives
One of the worst mistakes of those who want to buy their first apartment is not having clear goals and objectives, as this is the type of strategy that helps anyone save money and focus their efforts on something lasting and beneficial. Invariably, when you know where you want to go, it’s easier to figure out which way to go.
Realizing that you must accumulate a certain amount to acquire a property, it is possible to establish the amount to be saved every month and what period it will take to reach the amount. Even if you decide to opt for financing, you must have the down payment (which is not usually small).
Ignore Your Real Salary
Amazingly, many people are unaware of their true salaries. This is because you should not only consider what is written on your payslip but how much actually goes into your account at the end of the month. Only in this way is it possible to stipulate a viable value to save and buy an apartment.
Start by taking your gross compensation and discount, right away, the fixed expenses – which couldn’t be left unpaid. After all, this is capital that you will never have at your disposal unless you change your lifestyle habits. Looking at how much is left, set up your schedule and set realistic short, medium, and long-term goals.
Not Knowing how much You Spend
After deducting the fixed expenses from your salary, it’s time to make a good analysis of the eventual expenses since they can be responsible for a good part of your budget. This way, you can also better control your financial life, as it is simpler to make monthly planning.
In addition to putting everything on paper, it is recommended to have a good conversation with the family and explain that this is an investment of time. Emphasize that generating wealth is beneficial for everyone, even as a property can bring more stability or serve as a source of passive income for many years (and even decades).
Not Having an Emergency Fund
After the initial steps are over, you must do your financial planning in order to be able to set up an emergency reserve, as unforeseen events are very common in anyone’s life. They are caused by the most diverse reasons, and those who are not prepared can suffer devastating consequences.
No one is exempt, for example, from an unforeseen layoff or the emergence of unexpected expenses, such as medical treatment or the repair of a vehicle. Depending on your job stability, the amount to be accumulated varies, but ideally, it should be even greater for liberal and self-employed professionals.
Forgetting to do Simulations
A crucial step for those who don’t want to make mistakes when buying their first apartment is to do as many simulations as possible. This is essential in today’s market, as banks and other financial institutions offer completely different modalities and conditions depending on terms, total value and customer profile.
Bank financing is the most common alternative in Pakistan. In it, the beneficiary must return the obtained resource in several installments, which are added to the interest. It is worth doing some research and analyzing which choice will offer the best advantages for you.
In the case of a property in the plant, the possibility of financing directly with the construction company is interesting since the institution is directly interested in closing the deal with you. Generally, shorter payment terms than banks are offered, but there is greater flexibility elsewhere.
Give Up Good Investments
Another of the worst mistakes of those who want to buy their first apartment in terms of planning is leaving the money idle and not investing it. It’s no use accumulating a considerable part of your budget if you don’t make that amount work in your favor and increase as quickly as possible.
It is necessary to apply values with intelligence and strategy, in order to obtain dividends that allow you to achieve your objective. Just run away from the savings account and, even if you understand the subject, seek professional help to find applications that guarantee the best return.
Not Doing Good Research to Buy it
Of course, it is essential to raise the money needed to purchase the property, but it is also very important to carry out a good research so as not to make a mistake at such a time. This is because it is a transaction that involves very high values, and a wrong choice can bring regrets and a huge headache in the future.
Next, see the mistakes you can’t make in this quest.
1. Not Doing Enough Research Before Purchasing
You can’t make such an important purchase without having as much information about the object of acquisition, right? For that reason, you can’t help but do a lot of research before closing the deal. Or if you’re a woman this is one of the most basic tips on mistakes that shouldn’t be made, but also one of the most important.
It takes subsidies to make smart decisions — and one of the ways to do that is by using and abusing the internet. On websites, blogs and forums, you can assess what is the average value per square meter in the regions of interest, as well as how much they are asking for units that meet their needs.
Another good idea is to try to talk to the locals, as they are the best people to talk about the characteristics of the place you want to live in and even about the condominium or the neighborhood profile. Many problems can be hidden at first glance, so be careful!
2. Do not Put Reason over Emotion
Without a doubt, buying your first apartment no matter whether you are a man or woman apartment buying moved by emotion is a mistake you don’t want to make. Therefore, when doing research and finding the perfect unit for your demands, it is necessary to put reason first, leaving aside any impulsive or non-rational decision.
Be as pragmatic as possible, so you can get a good return in the future. It is essential to have an open mind and observe, for example, if there are excellent opportunities that you had not seen out of mere prejudice or because you are rooted in judgments and opinions that no longer match reality.
A neighborhood that was considered noble in its childhood or adolescence may be in decay and present security or mobility problems today. An area formerly seen as second-tier may have received improvements and present itself as a very interesting alternative in terms of appreciation.
Keep an eye on locations that are receiving investments from the private sector, such as the construction of shopping malls or modern residential developments. But the public power also has its weight: the adjacencies of new subway or train stations usually have good demand and great prospects.
3. Not Deciding Between a New or Used Property
When searching, it is also very important to define whether you want a new or used property, as this helps to direct efforts towards the type of unit that best meets your desires and the needs of your family. Keep in mind that there are great options for both situations, such as https://www.skymarketing.com.pk/lahore-smart-city/ , but one of them is right for you.
For those people who already need to move with some urgency, for example, the best option would be to purchase a used unit. Those who are not in such a hurry to make a move, on the other hand, can opt for the alternative that tends to be more advantageous: the apartments on the floor (e.g., apartments in Capital Smart City) – in addition to being new, they bring important benefits.
A new property is always more modern and better meets the routine of today’s individuals, who use a lot of electronic devices or appliances and don’t like to waste time with the demands of the home. In addition, the construction companies present good purchase facilities.
4. Not Defining the Important Details
Deciding between a new or used property is essential, but defining which details are important is also an essential attitude to help with your search. You need to evaluate your priorities, such as a strategic location or a unit in a condominium that has many parking spaces or leisure options.
Those with small children, for example, tend to have a simpler routine if they live close to their school. On the other hand, those who do not give up their health and fitness will do better living in a building with a gym or close to parks and squares. Observing these demands is crucial to making a good choice and not regretting it later.
5. Buying Property from an Untrustworthy Company
Once you’ve followed all the steps so far and you’re feeling much more confident when buying your first apartment, a mistake that can’t be made is buying the property from a company with no credibility in the market. Know that this can bring very serious problems in the long run.
Once again, the web can be a great ally to acquire property from a credible company. With just a few clicks, you have the chance to research the company’s reputation and see if there are many dissatisfied customers — or if deadlines and promises were duly met in previous ventures.
In the case of real estate, look for the pages of entities, look at the professional records of the brokers and the company itself, in addition to claims or any irregularities.
As for the construction company, you can check its rate of complaints in consumer protection agencies. Do not just take into account the rate of occurrences, but above all, how the company dealt with each one of them and the percentage of successful resolutions for the problems associated with this organization.
6. Not Reading the Contract Carefully
Carefully reading the purchase and sale agreement is a very important point when purchasing a property. This document works as a commitment between the seller and the buyer so that it provides guarantees for all those involved in the negotiation until the public deed is drawn up, which is a later step.
It is in the contract that the value agreed between the parties will be, in addition to the conditions and forms of payment, generating the legal right to purchase the property. This only reinforces that it needs to be very well prepared, preferably by a lawyer with knowledge of the real estate market and/or professionals working in the segment.
The fundamental data that must be included in this document are the names and identification of the buyer, seller and their spouses, if applicable. The same goes for the information on the property, such as an address, registration with the city hall, description of characteristics, as well as sales values and fees charged.
For units in the plant, it is also necessary to include the start and end dates of the work, the value and payment terms, construction company data, grace period for eventual withdrawals, location, and so on.
After checking out our content, it became much simpler not to make the common mistakes of those who want to buy their first apartment, right? This should be a moment of joy for any family and, taking the right attitude, you have everything to make a beautiful investment, bringing much more security to your life in the years to come!