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Tips on When to Buy a Property

Omkar Phatak Jan 11, 2019
What is the perfect time to buy a property? It is a question which everyone of us face, when buying property, after the initial 'how' is taken care of, that is, when you have money to buy one. Here are some tips that may help you.
Every man must make an investment in property at some point of time in his life, to take care of the basic need of shelter or for business purposes. An investment in land holdings or real estate in general, is always considered as a good asset.
In the times of recession, property prices fall greatly. The losses which herald recession, get triggered by depreciation in real estate properties. Banks, big financial institutions, big corporations collapse. Unemployment is rampant everywhere.
It's a time of rare opportunity and enterprise. These times test the mettle of people and those who can survive it, thrive later. This is also a good time for a person who wants to invest in real estate.
Granted that the property prices have fallen drastically and there is no immediate hope of appreciation in prices, if investment is made, but there is always hope that they will. Strategic investments made in particular sectors will cost lesser now. Get a good appraisal or valuation of the property, according to market prices, before you go ahead.
As in any financial transaction, the golden age-old rule applies here too - 'Buy cheap, sell dear'. Recession is the time to buy cheap. There are certain properties, especially in cities which in boom time would be beyond your budget, but now are well within your reach.
The timing of purchase and the choice of property depends on your purpose behind acquisition of the same. First, ask these questions to yourself. Why am I buying the property? What are my expected returns from the investment?
If you are buying it for the purpose of residence, as you need a bigger space for your now-expanded family and you do not intend to sell soon, now is a good time to buy. Here, you have a wide range of choices, between selecting homes in cities, to their outskirts, or even countryside.
Housing prices in cities have dropped marginally to drastically in some cases. In future, you may expect appreciation, but the bottom line is, in times of recession, you have a wider choice than before. The time of buying is indeed of essence, as currently, the property prices are very volatile.
It will take some time for the prices to settle down. Let the dust settle down a bit. Identify the trends of prices in the areas that you are looking for. Scout according to your budget and taste, for a good home.
If you need to make an investment for an office space or business, then there are three most important things you must look for; location, location and location. You obviously have to scout for estates in the commercial and business areas. This is a tricky time for commercial real estate investment, especially if it's a large acquisition.
If you are a big corporation, your risks are lower, as then you have a financial backing. Big corporations can acquire really good commercial estates at quite a low price in times of recession.
However, if you are a small investor, you need to be very careful. It's difficult to advice for sure as there are many variables to be considered. For example, the nature of your business, the growth possibility it has and so on. In this time of opportunity, get as much information about the pros and cons of your business venture as you can.
Market research is a thing that needs to be done thoroughly. If you think the conditions are favorable and the time for your idea has come, then make a real estate investment according to your needs. Take the risk. After all, those who take risks, get somewhere in life and the biggest risk is taking no risks.
So to conclude, evaluate your needs first and then the risks, review your budget, thoroughly research prices and then go for scouting a property. Think long term, in any transaction you make.