Avoid These Mistakes While Buying an Apartment

Nowadays more and more people prefer to live in apartments rather than in an independent house because of number of reasons.

Buying an apartment is certainly a long-term investment, especially for those who are buying apartment for the first-time. However, while making such important investment of your life, you need to be careful.

Usually the busiest times when most of the apartment are on sales are in the beginning of new financial year. That is because traditionally many investors prefer to buy apartments after they visit their financial adviser.

To buy an apartment in certain prime location may always be great long-term investment that can deliver both strong rental income and high capital growth too.

However, there can be few common traps that a first-time investor must try to avoid while making a deal for an apartment.

While looking for apartments in Phoenix, it is essential that you must be very careful and avoid committing any of the following mistakes.

  1. Never buy a wrong kind of apartment in certain wrong location. As an example, buying a 3BHK with 2-bathroom apartment in certain area where the demand from tenants will be just for 1 or 2BHK apartments.
  2. While buying any apartment just skip to check the track record about the developer to make sure that they can deliver you on the date that they have promised in terms of their quality.
  3. Forgetting to check the actual apartment size properly. While buying an apartment you are paying on the basis of actual square meter, and every square meter has a value.
  4. Consider to purchase an apartment that is close to the home of owner-occupier rather than checking at investment opportunities in the metropolitan area.
  5. Choosing an apartment that is based on friends or family advice rather than seeking your own independent information.
  6. Purchasing an old apartment, that can drain out your finances due to its maintenance cost.
  7. Choosing such complex where majority of the owners are in fact an investor owner and very few are actual owner-occupiers. If the percentage of owner-occupiers is more in the complex, then the complex will be well maintained.
  8. Without making full assessment about the actual cost of purchasing and holding the apartment. For example, if in the apartment, there are few other additional cost issues as compared to buying stand-alone house e.g. strata fees.

Choosing to purchase an apartment with high strata fees can eat into your cash flow.

  1. Choosing a wrong home loan, which can also increase your cash flow?
  2. To purchase an apartment in such a location which is not at all attractive to tenants, due to unavailability of amenities like transport or shops?
  3. Choosing to purchase an apartment in such area where plenty of other housing properties are available, as a result rents can be lower and the rate of capital growth will also be limited.
  4. Instead of taking support from any reliable property dealing agent try to select your own tenant.

Choosing to have an apartment with the intention of getting very short-term gain.

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