5 Crucial Factors to Research Before Buying a Property
If you’re planning to buy a property and ensure that your investment will be safe and that your returns are high, you need to do some background research before investing. The analysis can help you answer essential queries, such as where the property might be in the future, the property taxes, and how safe the neighborhoods are. The more research you do, the better prepared you’ll be to make your purchase.
If you’re still learning the ropes, begin with these five crucial factors to research before buying a property to avoid buyer’s remorse. Even seasoned investors can learn something new from this list.
1. Utility Costs
The cost of utilities will be some of your most significant recurring expenses when owning a home. Everything from heating, air conditioning, and water will add up each month, so it’s essential to do thorough research on utility costs in your area (and other potential areas you may live in) before committing to buying a property.
It might seem tedious, but understanding how much you can expect to pay every month will help you make smarter decisions about which property to choose. To get a sense of what you can expect monthly, check with utility companies and review online estimates before moving forward with your purchase.
2. Environmental Considerations
If you’re looking at properties in your area, research past and current environmental hazards like water quality, emissions from nearby factories or roads, or any nearby hazardous materials. These could create problems for you down the line, so it’s best to know what you might be dealing with before purchasing.
Do some research on environmental factors that may influence your property, such as rain levels, number of hours of sunlight, and nearby animal populations. If you’re looking for a property in an area that gets fewer than 10 inches of rain per year, you might want to reconsider if you don’t have irrigation systems in place.
3. Property Restrictions
If you’re considering buying real estate, it pays to do some research and learn about your potential investment restrictions. Restrictions come in two forms: Neighborhood Covenants, which cover all properties in a given subdivision, and Homeowner Association (HOA) restrictions, which cover specific residences. Both types of rules can affect what you can and cannot do with your property.
Each city and state has different property-restriction requirements. For example, in some areas, you may need to get special permission for an in-ground pool or shed. Other restrictions will prevent you from making certain upgrades or alterations. Landscaping and pets are other significant things where regulations come into play, and these can be difficult to negotiate when house hunting.
4. Your Water Rights
One of your priorities should be researching water rights and wells when buying property. If you’re buying land that already has a house on it, there’s a good chance you have easy access to water, but if you’re looking for property without an existing structure, then you need to know where your water supply is coming from.
Water rights and usage can be very different from state to state, but most states may require you to get permission to use a water source on someone else’s property. It’s essential that you find out what rights come with your property and where you’ll get your water before further negotiations. Speak with your attorney, realtor, survey, or property seller to help you understand your water rights before purchasing that property.
5. Neighborhood Amenities
When looking for a property, one of your top considerations is its proximity to nearby necessities, like grocery stores and pharmacies. Get in touch with reliable real estate agents or your city’s government offices and request data on nearby restaurants, shopping centers, parks, schools, and more. Knowing what your neighborhood offers will help you decide whether it meets your needs before spending any money on an investment property.
Make sure that both short-term and long-term needs are accounted for. Is there parking? Are there enough grocery stores within walking distance? Will your commute be too long? What will happen when children grow up in your neighborhood and go off to college?
When you’re planning to purchase a property, you need to do some thorough research on the area you intend to live in and the type of property you’re considering buying. You might discover later the neighborhood you chose isn’t great, or the property doesn’t have what you need. If you do your research first, you’ll find and purchase an ideal property quickly and easily.