Whether you’re buying your very first home for residential or investment purposes, or have been in the industry for some time, there are a number of fears that plague all real estate investors. We’re here to put your mind at ease by telling you that you are not alone, and some simple, easy, and positive ways can help you make the right decision. Let’s get down to the top fears of property buyers…
Real Estate Fears—Myth or Reality?
To begin with, here is a short list of some of the most common fears of property buyers:
- I can’t afford to buy a house
- I will not be able to buy a house I like
- I’ll end up buying a money pit
- I’m afraid of getting conned
- I’ll have to face depreciation in property values
- I will not be able to maintain the property
- I’d rather rent a house instead
- I might overspend on a house I like
- I feel like I’m making a mistake
Now let’s debunk these mythical fears and put your mind at ease.
I Can’t Afford to Buy a House
While we all face budgetary constraints when making a property investment, fearing that you will not be able to afford a house from the get-go is not the right way to go about it. Most people assume that they will have to spend their life’s savings on buying a house and will then have nothing saved for rainy days. In fact, this is not the case for most people, and you can tackle this fear effectively, too, by calculating exactly how much you have saved before you begin searching for that perfect house.
Once you have a better idea about your budget, you can determine precisely how much you want to spend on your new house and search for the ideal property accordingly. Property investment does not always cost you an arm and a leg if you comb the market, rather than accepting the first property that meets your budget.
I Will Not Be Able to Buy a House I Like
While you might have heard of some people who’ve been unable to find their dream house in spite of a long search, there is actually a large ratio of successful homeownership stories that go unheard of. Many people enter the housing market unsure of what they are looking for, and thus, they end up giving up on the search entirely rather than streamlining the process and coming to a sound decision.
This is one of the most common real estate fears, and there’s a fairly simple solution to it. Create a list of all the features that you absolutely cannot do without in your home. Crosscheck the list with all your family members and add any points that you’ve missed out on. Begin your search once you have a clear idea of what you need to find. Do you want a single or double-storey house? Should it have two or four bedrooms? Do you need a car parking space for more than one vehicle? Is having a yard or garden a priority? Mark the essentials and then search for the right house so you can finalise a property that you can not only buy but actually want to.
I’ll End up Buying a Money Pit
Most people investing in the real estate industry fear that there will be hidden costs associated with the property that will crop up once the deal is done. From uninspected structural repairs to poor plumbing and wiring, and pest infestations, there’s a lot that a house can surprise you with after you’ve moved in. While we always recommend investing in a property after keeping a certain amount aside for emergencies, most of us hope we’ll never have the need to use that money. So how do you ensure that your money is well spent on a property that deserves it?
Well, you can use a quick and convenient home inspection checklist to verify that the property you are buying is not hiding anything beyond the surface. Minor flaws like cracks or peels in the paint, or the need for a lawnmower to tame the overgrown garden are things that can easily be taken care of, once you move in, as long as the problems are simply due to poor maintenance of the property. Buying a newly built or newly renovated house is also one way to eliminate most of your concerns with regards to urgent repairs in the near future.
I’m Afraid of Getting Conned
There are plenty of conmen in the real estate industry and let us first assure you that your fear is perfectly justified, and you are not being paranoid. If an offer seems “too good to be true”, it generally is.
As a rule of thumb, always remember that “unbelievable offers” often come with hidden costs, and if you don’t want a disastrous surprise waiting for you, you need to ask yourself why anyone would offer a seemingly perfect house at an amazingly low price. Most offers of this kind usually have a catch. When you start questioning why, you’ll be able to avoid the cons and find a good deal on a property you like.
I’ll Have to Face Depreciation in Property Values
Property values rise and fall and are affected by a number of factors, including the condition of the housing market, the state of Pakistan’s economy, the condition of the house itself, and so on. Thus, there’s very little that can be done to ascertain that the property retains its value after purchase. But there is good news for those who want to purchase a future home rather than an investment venture.
While depreciation in property values is among the most common fears of property buyers, if you’re planning to live in the house itself or hold on to it as an investment for some time to come, you do not need to fear the drop in prices. Not all property depreciates in value over time, and a boom in the real estate market on a well-maintained property will automatically help it rise in value when you are selling it off.
This real estate fear, however, is quite valid for investors who plan on selling a property immediately after purchase and we’d recommend you to go through our research on the property market trends for that particular area before you invest your money. Our H1 2019 market reports for Karachi, Lahore, and Islamabad can help you if you’re investing in one of these three cities.
I Will Not Be Able to Maintain the Property
This particular real estate ownership fear is commonly found in people who’ve been renting for a long time and are now considering property ownership for the first time. The fear’s genuine. You’ve been accustomed to calling up the landlord for all your maintenance woes and dealing with them yourself might seem challenging, but think of the benefits!
No more monthly rents, property in your name that becomes a major asset, no need to move houses every year, and the list goes on! All things considered, owning your own house is the next step on the ladder to success. If you’re buying a ready property, use a low maintenance home checklist to determine whether you can easily ensure the upkeep of the property over the years. You can also consider buying a house that is associated with a homeowner’s association that maintains the overall upkeep of the society and can help you out when you no longer know where to turn to for assistance.
I’d Rather Rent a House Instead
Ask yourself honestly: Would you really prefer the hassles of renting over ownership? One of the most prevalent real estate fears is that renting is relatively safer. Fewer risks, shorter time commitments to a single place, and no fear of property value depreciation; but do the math here. The rental money you’re forking out each month could easily help you own a house in a few years, helping you enter the property ownership market with your own asset.
Rentals have their share of advantages, there’s no doubting that, but if you have the funds saved up and you want to ensure a secure future for your family, investing in property is the way to go. Don’t let your fears hold you back, take the first step, and you’ll certainly be able to battle the challenges ahead to buy your own property without being scared of investing in real estate.
I Might Overspend on a House I Like
You’ve set your budget for making a property investment, scoured the real estate market in the area of your choosing, and shortlisted a few places. But you love one house more than the others, and it’s not in your budget. What do you do? Walk away! Yes, read that again. Do not overspend on buying a house you love unless you are absolutely certain that the extra money you’re spending on it is in excess to your basic requirements and will not hinder your lifestyle and everyday expenses in any way.
Overspending on buying a house is a fear that plagues almost all property buyers, especially when you’re looking for a home for your family rather than your next profitable investment venture. The sentimental value we attach to our homes is what makes us overspend on buying that perfect residence, but remember, it is the people, not the place, that makes a house into a home. So, focus on getting the best house within your budget rather than aiming for that perfect house that will drag you into debt. Talk to the neighbours, the real estate agents, and do your own research. Figure out what prices are prevalent in an area before you consider it for your investment.
I Feel Like I’m Making a Mistake
Making a property investment is almost always a risk. Irrespective of how thoroughly you’ve done your research, there is a big chance that unforeseen factors will bring down your house’s value, urgent repairs will crop up, and you’ll often feel like it’s more effort than it’s worth. But let’s be honest here.
We feel like that about every big or small decision we take in life. So, is it really enough to keep you from realising your lifelong dream of owning your own home? If not, then you know you’ve tackled one of the biggest fears of property buyers and can now move on to searching for your ideal property. Keep the process as thorough as possible and don’t take any shortcuts. Find reliable listings on Zameen.com, hire the best agents, and convert your dream into a reality!
Real estate ownership fears are real, especially for first-time buyers. But don’t let them dictate your decision! Tackle them effectively using the tips given above.
Keep following Zameen Blog for more property investment advice. Email us at blog@zameen.com if you have any queries. Good luck with the house hunting!
