Buying in the Current Real Estate Market: Steps Towards Safeguarding your Investment
According to EY’s Global Capital Confidence Barometer for Real Estate, Hospitality and Construction, a staggering 85% of property industry experts consider the global economy to be either improving or stable. This renewed level of growth is most prominent among the emerging markets, with India, China, Qatar and Chile leading the pack in terms of real estate growth.
This trend is also prominent among advanced economies such as the U.S. and UK, although it is has been met with considerable caution by leading financial experts in these regions. With many fearing that the formation of a new housing bubble could threaten long term economic recovery, home-owners and potential buyers will face an uncertain time during the next financial quarter and beyond.
Safeguarding your Property Investment
The situation is more concerning for aspiring buyers, however, as rising property prices are making it increasingly difficult for them to find accommodation within their financial means. While a small window of opportunity remains for individuals who wish to purchase a new home, the nature of the market means that they must be extremely cautious and take the necessary steps to safeguard their proposed investment. Consider the following: -
- Adopt a Risk Averse Investment Approach: With property prices continuing to rise, the value that you are likely to receive for any potential real estate investment continues to diminish. This means that you must take a risk averse approach to sourcing and buying property, especially when it comes to establishing a financial budget. While it is always tempting to accept the most lucrative mortgage offer in order to obtain the best home, you will be better served by considering more modest offers in the current market. This will enable you to purchase a home that offers excellent value for money, while it will also help you to secure manageable monthly mortgage repayments.
- Consider your Purchase in Line with Short and Long Term Goals: As an aspiring home-owner, you are likely to have a series of goals that will impact on your choice of property. While some of these may be short term aims, however, others will be long term goals that may take years to achieve. Both of these need to be given careful consideration when you consider investing in real estate, especially in terms of the size, cost and geographical location of your new home. Failure to do this may fatally undermine your real estate investment, especially if you extend an offer with a view to making long term financial gains and are then forced to sell the property ahead of schedule.
- Invest in Professional Guidance and Assistance: In terms of the safeguarding the long term value of your real estate investment, it is also crucial that you secure professional guidance as an aspiring home-owner. This is most important when it comes to conveyancing, as the swift and effective transference of deeds will lead to a more seamless sale. Not all solicitors will deal with certain lenders, and failure to hire the services of a reputable conveyancing firm could cause considerable delay the transaction. On a similar note, you should also be willing to invest in a comprehensive structural survey of your property, as this will help to identify large scale construction issues that could impact on your proposed purchase or the price that you are required to pay.
The Bottom Line
As an aspiring home-owner, it is crucial that you take practical steps towards safeguarding your proposed property investment. Without the financial security provided by an existing home, you can ill afford to take risks or purchase a property that has little or no value in an increasingly competitive marketplace.
This article was contributed by Laura, who works as a blogger and researcher for compareconveyancingquotes.co.uk. She has a keen interest in real estate, and has enjoys commentating on the latest industry trends.