Although the market seems to be as simple as buying and selling procedure, property trading can be a big hassle for an inexperienced person and plausible to scams/deceits. Over the years the real estate market in Nepal has seen various home and land scams ranging from bogus property ownership to unendurable homes.
Here are some tips for the naive buyers in the real estate market who is trying to get the most out of his budget while avoiding property scams:
1. Choosing the right property at the right price:
Investing in real estate is usually all about capital growth, so choosing a property that is more likely to increase in value is the most important decision you will make, so buying at the right price and time is absolutely critical.
2. Do your sums – Cash Flow is always king:
Investing in property is a proven path to long-term wealth, however you should consider it as a median to longer-term type of investment, so you'll want to make sure that you can afford to maintain your loan repayments over long term.
3. Understand the market and it’s dynamics when you are buying:
Consider what other properties are available in the immediate area and speak to as many locals and real estate agents as you can – they will let you know if one side of street is considered superior to the other.
4. Pick the right type of loan to suit your interests:
There are many options when it comes to financing your investment property, so get sound advice in this area as it can make a big difference to your financial well being.
5. Use the equity from another property:
Leveraging equity in your home, or equity from another property investment can be an effective way to buy an investment property. Equity is the amount of money in your home that you actually own. Also, using the equity in your existing home can allow you to borrow more money against your investment property.
6. Check the age and condition of the property and facilities:
Before investing into any properties, getting assured of the age and condition of the property becomes crucial. Physically and structurally safe property is the best bet.
7. Seek an expert’s advice:
Despite all these tips the property market might just overwhelm you so choose a certified Property Consultant. There are various Real Estate consultants on the market. Choosing the right, registered consultant who has your best interests and a good property portfolio is crucial. Although they may sometimes charge a reasonable fee, their experience in the real estate trading can prove to be invaluable.