According to real estate agencies, more than half of buyers prefer housing on the secondary market. It has many advantages. Without the risk that the house will not be put into operation, as in the primary market, you cannot waste time and effort on major repairs and get to know your future neighbors. All technical systems in the house have long been debugged and are working.
However, buying an apartment in secondary housing implies several nuances that are important to know about in advance. To book your dream apartment or unit in Australia, please check out Units for sale in Wollongong.
We have found what mistakes are most often made when purchasing housing on the secondary market. We figured out which aspects should be paid attention to and how to complete a successful transaction.
Do not miscalculate with the cost
The work of realtors is not regulated by law, no one checks their level of competence, so any information should be checked independently.
Appraisers advise you to go to specialized sites and see how much a similar apartment in the same area costs. This will allow you to independently and reliably determine whether it is worth buying an apartment for that kind of money or is it better to wait.
Even a cursory understanding of real estate pricing can help you get a great deal. Online sites with a million audiences are the most convenient tool for monitoring the cost of housing. The average cost of a one-room apartment in the major cities is almost 1 million USD. The price of two-room apartments, as the analyst shows, is 43% higher, and for a three-room apartment. “In autumn, real estate prices rise, in summer, due to low demand, they fall.
This year, according to analytics from the OLX platform, we predicted a rise in property prices of up to 16% over the summer period. This should also be taken into account when buying an apartment.”
“The apartment was sold for 1.7 million in the summer, but now it was purchased for 1.5 million. No people were willing to buy it, and the seller made concessions,” says Anatoly Topal, vice president of the Association of Professional Real Estate Managers. Often home sellers and realtors themselves offer to raise prices. A homeowner says that he was ready to sell his two-room apartment near the metro station for 1 million six months ago. “I needed money, so I was ready to give in. Within 10 minutes the realtor called me and said that you can get more for the apartment. I agreed and couldn’t find buyers for almost a month,” he says.
The fine print in the contract
Before buying an apartment, the seller and the buyer usually sign a Preliminary sales contract. At this stage, the potential homeowner makes an advance payment of 55,000–85,000. For two weeks, while the paperwork is underway, some buyers find the best option and demand to return the deposit. The fact that it is not refundable is indicated in the agreement. But not all buyers read the contract carefully.
An owner lost about 100,000 dollars. “We bought a three-room apartment and made an advance payment, but then we found a better option and decided to abandon the deal. The deposit was not returned to us, referring to the clause of the contract, spelled out in small letters. I now carefully read all the documents before signing them,” he says.
Buy cannot be sold
Many buyers forget (or do not know) that if an apartment was bought less than three years ago, then you must pay an additional tax of 5% while selling it. This must be remembered when choosing an apartment, since housing, as a rule, is bought for at least 3-5 years.
For example, a family of four becomes the owner of a one-room apartment, but in an elite area of the city, not far from the center. “For the same money, one could buy a two- or three-room apartment, but in a residential area. Such housing is more comfortable for the family,” says an experienced realtor.
After six months or a year, this category of buyers still decides to sell housing, but not everyone knows that they will have to pay tax. The location of an apartment in a certain area significantly affects the tax cost.
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