Why you should think before buying a property?

Buying or renting a property is one of the most confusing times one comes across in life when it comes to taking big financial decisions like investing in property. However, most of us think of buying a property after the age of 30, but we forget that investing in property for short duration does not prove to be beneficial as the property trends show only a marginal appreciation in the property pricing over a short duration of time. Hence, renting a property for a short period of time is a better option.

The following are some of the reasons why buying a property can prove to be a pitfall for a few:

Spending money on a property is a huge decision. It’s a big financial commitment that you should be confident of making possible before you pay the amount for a property.

The rate of interest on the finances taken from the financial institutions or the bank might vary. 

Hence, at times when the interest rates rise, your repayment amount will also increase proportionally. Thus, it is important to know the range between which the rate of interest would vary so that you can prepare yourself for the changes that might occur in the rate.

Expenditure over a property bought is not limited to the mortgage value alone. It also involves maintenance cost. Hence, you must be confident of being able to afford the maintenance costs post buying the property. If you extend your budget too much when you buy a property, then, you would have to compromise on your holidays, entertainment and leisure time expenses.

Once you buy a property, the flexibility to shift to any other favorable place gets reduced or limited. For example, if you want to switch to another company in a different city or location that is located far from your already bought home, then you would have to either find a job nearby to your place or sell your property out of helplessness.

Also, selling your property is not an easy task. You will have to monitor the property trends in the market and wait for the prices to go up so as to gain profit from selling your property.

If you happened to buy a property through a joint investment, then in case you split up, the process of sorting out the property gets more complicated and expensive.

Hence, buying the property at the right time in the right location is crucial. A well thought and planned financial decision regarding buying a property must be taken in order to reduce the risks of paying for the wong property.