Buying A House

Real estate is a general term used to refer to land, the natural resources on that land as well as man-made structures such as buildings. The development, sale and lease of buildings and land can also be referred to as real estate. Houses can be bought by individuals, organisations, investment trusts and groups for different reasons. The services needed for the transaction to be completed such as mediation services are also explored.

Why do people buy houses?

Houses can be bought for various reasons: residential use, commercial use, store of value/wealth or for speculation purposes. For residential purposes, one purchases the home and occupies it of leases it out to an individual who then occupies it. For commercial purposes, the houses are bought as an investment that is then expected to generate a monthly, quarterly or annual return. The building can be used for business or leased out to people who are engaging in commercial activities.

Houses can also be bought as a store of wealth or value where a wealthy individual buys the house, maintains it well over time and passes it on to future generations who can then pass it on or liquid it when need be. In addition, there are those who will purchase houses for speculative purposes where washed down houses are bought, renovated and held until their value has increased several fold before they are sold for profit.

Houses can also be bought as gifts to different people; say family members or friends who have played a huge role in your life. Organisations can also use houses as rewards to their top employees, great performers or as motivation for those who may not be fairing too well.

What help might be needed when buying a house?

Before the purchase of houses, due diligence must be done to ensure that the purported seller has the authority to sell the house. In addition to this, the house must be valued to ensure that the asking price is not a reap off, the title deed authenticated to ensure the buyer is not being defrauded and contracts reviewed to ensure they are legally binding. In some cases, the house has to be renovated before it can sold off. The buyer therefore requires the following service providers before the transaction can be completed: valuation officers, attorneys, real estate investigators and renovation experts. Tax and financial experts might also be called upon to assist in the determination of the effects of the purchase on different financial matters while mediation services may be required in the case that there is a conflict of lack of understanding between the parties involved in the transaction.

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What help might be needed after buying the house?

If the house had not been renovated before the purchase, the owner requires renovation and the real estate agent can assist with hiring the best service providers. This also ensures that any fixtures, fittings or equipment that the new owner would like rectified or changed are actually changed. In addition, the new owner will still require the services of the agent in the case that the house requires to be let out either for commercial or residential use.

While houses can be a great investment for your family or financial wellbeing, a lot of expertise is required to ensure that you are making sound decisions and that you understand the effects of this decision to your family and finances. Having the right team by your side ensures that you make the best decision.