First steps to finding and buying a property
Thinking of buying a property? Here are some helpful tips to help you make good decisions.
- First of all, it is essential to know your short, medium and long term needs: analyze and project how long you will stay in the area, your current job, family size, etc. Search for a property according to that projection.
- Location is key when it comes to investing correctly, whether it is to live or rent. Analyze factors such as: the existence of public transport and the proximity of shops or educational centers for added value. Be sure to include criteria about the neighborhood, as the neighborhood is more difficult to change or fix.
- Keep in mind the future. Favor properties that see growth in the medium term and in dynamic areas.
- Make a list of essentials and non essentials that you look for in a property. Focus on the ones that are most important to you.
- Conduct an extensive study until you find the best credit in the market. Take into account that the monthly payment of your mortgage should not exceed 40% of the net income of the family unit. In this sense, take an honest look at your own debt capacity and rely on the bank to make a comparison with possible future expenses (such as the birth of a child).
- If purchasing a condominium, inquire about the HOA/maintenance fees. If these are very high, or are distributed among very few neighbors, you will have to incur monthly payments that will significantly increase your investment or make it less profitable.
- Research the real estate / developer / builder. Research from the architect to the quality of the construction materials. It can be online: review their previous works and opinions. Also, if the project is in the pre-sale stage, check with the MEIC if the project is approved.
- When submitting a purchase offer, do so in writing and include everything that was previously negotiated (remodeling, coverage of legal expenses, transfer, painting, repairs, etc.)
- Before signing the purchase agreement, visit the property and do your own “visual inspection”: checking for faults in the finishes, windows, doors, furniture, scratches on the floor, toilets, etc. It is essential to run the water to check the operation of the faucet and water pressure.
- Once the property is purchased, the new owner should know they must channel claims directly with the builder and that there is a civil warranty of up to five years on defects.
- Take into account the expenses you will incur when moving to a new place such as moving, installing telephone lines, Internet, cable, buying furniture, curtains, electrician, etc.