Read this helpful article on Homebuying tips published by Gulf News, featuring a quote from Head of Sales and Leasing at Espace Real Estate, John Lyons.
Homebuying tips from experts | Published in Gulf News: October 15, 2018
We ask these industry insiders what it takes to become a successful real estate investor. The competitive prices in the market have removed an important barrier for many homebuyers and real estate investors. However, while certain obstacles have been cleared, the home-buying process itself can be a daunting task, especially for first-time homebuyers.
We ask real estate experts to share tips and resources for buyers to better understand their investment.
If you’re buying directly from a developer, it is essential to check that both the developer and the project are registered. It is a must to check the quality of construction and track record of the developer. For off-plan projects, please ensure payments are made directly into the project-linked escrow account. Do consider the age of the property as well. Each purchase can result in unexpected additional costs, so before you take possession of the property, we advise you to appoint a company that offers professional snagging services.
Watch out for your finances
Buying a home is a very emotional and exciting experience, but cash buyers should first ensure the availability of funds before proceeding with a purchase. When buying on bank finance, obtaining pre-approval saves a lot of time and gives a clear indication on the choice of the property.
Bring a list of the things that are important to you and questions you may want to ask while viewing the property. Location is a key element; it’s essential to get a good feel for the neighbourhood by driving around streets too. Check the property thoroughly — taps, flooring, cracks on the walls, etc. Go back for a second viewing; if you viewed the property in the day, try to see it in the evening as well. Compare and check recent transactions of similar properties.
If you can visualise the property as your perfect home, then don’t let superficial issues put you off. Instead, you may use those to negotiate a good price. Sellers usually keep a small room for negotiation, but if they don’t bring the price down, be creative by asking other concessions, such as sharing multiple fees attached with the property purchase.
Be prepared to compromise When viewing multiple properties, it is usually necessary for buyers to compromise on some of their requirements. However, compromise only on aspects of the property that you can change, while accepting a little compromise on the things that cannot be changed. Don’t compromise on the things that are important to you, if they cannot be changed. Everyone has a list of requirements, but most will not be able to tick the entire list.
Connect with a broker who works for a reputable company and offer to appoint them as your exclusive agency, if they are in a position to provide a full range of information that can help you to make an informed decision. Your broker should have access to all comparable transaction data and development maps for your chosen community. The broker should also be willing to share this information with you at a consultation meeting, offering full transparency throughout the journey.
When submitting an offer, don’t put forward a proposal that is not in line with current market valuations, as it calls to question your seriousness and may prevent a meaningful negotiation. The message is to go in with a low offer, but not one that would prevent further talks.
says John Lyons, head of sales and leasing, Espace Real Estate
Have an off-plan strategy
Most people are familiar with buying a ready property but have no idea how to purchase an off-plan property. They may consider buying off-plan after hearing from a friend or a relative about the high return on investment of off-plan, which is often true. To maximise profit and minimise risks, start with an in-depth research on all the properties you are considering to buy, looking into the property type, completion date, location, developer, payment plans, etc.
Also, plan according to your budget and identify the reason why you want to buy the property, i.e. to sell the project on completion, resell the property before completion or to rent the property on handover. Successful investors are usually those who have a clear, sharp plan when purchasing a property.
We encourage clients to invest in a developing community rather than a fully developed one since the future returns will generally be much higher for a developing community. However, the project must ideally be close to a good supermarket, school, mosque or church, mall and preferably your favourite hobby, whether that would be a beach or a football pitch, etc.
Keep a long-term perspective
You often hear of “investing for the long term”, yet how seriously do you take such advice? If you invest in real estate, it is almost like investing for your future — opening up many opportunities and gaining wealth.
The current market guarantees the best opportunities for investors, and benefit from good assets and reasonable prices that effectively will be valuable diamonds in their hands in the near future. The question is, are you investing for the long term or for security purposes? Both ways, you will gain assets and money, making the real estate market a sure winning formula for all.