When decided to embrace the path of home ownership, it can be difficult to decide how you want your home to be. Should you buy a ready made home, or should you have it built? There are pros and cons for each option, and in the end, what you choose depends on your criteria and your priorities. After all, when you get it built, you know that it’ll be exactly as you want it, while it’s not always easy to say so about already built properties. But in the end, homeownership is a path of challenges and dilemmas. There are a thousand of things that you need to consider when you purchase a home. You won’t be surprised to know that the main worries relate to finding a mortgage and the right location. But not many homeowners think of what happens next.
Who owns the home?
It’s not uncommon to buy your first home when you are in a relationship. This is what is called a joint ownership, and that’s exactly the specialty of propriety solicitors. Why so? Because joint ownership agreements are great as long as people are happy together. They’re more complicated when you are looking to move separate ways. Ronald Fletcher & Co. can help you to get things sorted between you. Another situation where it can be difficult to know who owns the home is if you’re buying a historic building. Some old houses can only be purchased on a lease – generally 100 years – after which they go back to the institute you bought it from in the first place. Buying on a lease means that you can’t proceed to home improvement and renovation work without the express authorisation of the owner.
Buying to rent or to live in?
It might sound like abandoning your plan of home ownership, but it’s essential that you ask yourself whether you are buying to live in or to rent. You can indeed generate substantial passive income from rental properties, as Chad Carson is demonstrating here. Chad manages over 90 rental properties, a portfolio that he’s developed since he left college in 2003. He started with a low budget and gradually increased his saving with house hacking strategies. The trick, he says, is about generating large amounts of cash so that you can afford the bills and save money in the long term.
Affording and allowing renovations
If you decide to buy a home that hasn’t been built for you, or if you have lived in your house for a long time, there’s a fair chance that you’ll come to the point when you want to implement some serious renovation work. You know the style: getting an indoor gym, adding a bedroom at the back, etc. When you renovate, you need to carefully assess not only the building, but also your finances to ensure that your project will be possible. The first step is about getting the approval of your banker and of expert commissioners to ensure the project is safe. Some projects can receive additional funding from local councils or even benefit from a tax concession. However, you need to apply for a planning permission as soon as you’ve finalised the building plan.
Owning a property gives you access to a new world of complicated legislations, wealth growth, and development rights. The property game has a lot of rules that you need to learn if you want to play and win.