What to Consider When Buying Secondary Property

The number of real estate developers operating in Bangladesh currently is significantly high, though not all of them are the same size in terms of monetary value of business or number of employees in the company. The high number of real estate developers means that new residential developments keep popping up across the city on a regular basis. However, just because there are a lot of buildings being constructed doesn’t necessarily mean that there is more affordable housing now available for people. 

On the contrary, since the rate of inflation in the country is at an all-time high, there is an automatic impact on consumption of all kinds, particularly items which are usually considered a luxury or a privilege: such as a car, motorcycle, or a new apartment. Even after researching thoroughly, there are certain things you must keep in mind when you are looking to buy your first secondary property: 

• Age of the secondary property:

Before you invest in buying secondary or resale property, you need to ensure that you are making a well-informed buying decision. One of the ways to do that is to check the age of the property, as well as the length of time for which it has been occupied. This will allow you to gauge whether you will need to make substantial investments into repairs and renovations before you can move in to the property. 

• Current valuation of property:

Another major idea that you must get cleared out before you move in to locking your payment on the resale property is the value of the property in the current market. Based on the current value of the property, you can easily determine whether it will still be lucrative a few years later, in the event that you want to sell it moving forward. 

• Existing loans/ mortgages/ due utilities bills:

This is true for any product that you might buy – check if there are any outstanding payments owed for the property, including any and all taxes, utilities, loans or mortgage payments. In case you have stumbled across this section, it is your duty to ensure that all fees, taxes and payments have been cleared prior to your investment being made. 

• Ease of property transfer and re-registration:

In case of resale or secondary property, check that all documentation of previous ownerships is in order; and that all owners agree about the resale of the property and its subsequent conditions. Once you have paid your dues, re-register your property correctly to avoid any future ownership-related issues. 

• Security of property:

Whether you are planning to live all alone with other friends or with your own family / extended family, you need to make sure that your secondary property is fully secure. Check to make sure that the fire safety measures are updated, and that CCTV cameras and security guards are properly equipped to handle any potential security breaches. 

• Brokerage services:

Secondary or resale property is usually handled on behalf of the buyer (as well as the seller) by a brokerage agency or firm. When hiring a brokerage agency, conduct proper research, talking to real-life customers to gather experience. Also check out if the agency is legally and ethically sound. Finally, make sure you are getting value for money in terms of the quality and promptness of the services that you will be provided.  

• Location and proximity to amenities:

Since buying any property is a big investment, you need to ensure that your resale/ secondary property fits all of your specifications. This means that it needs to be in close proximity to at least one hospital, one shopping mall, one primary educational institution, one or two banks, ATM booths, and departmental stores. 

• Physical condition of the property:

When buying any property, especially secondary, it is smart to check the physical condition that the property currently is in. If it is an old property that will require a significant investment in repairs and renovations (a sunk cost), then it might be better to see if you can renegotiate the asking price of the property to include the losses you will have to incur on your end. Also, if the cost of repairs is much higher than is feasible for you, you might have to look for an alternative property that perhaps matches your specifications better. 

If you want to invest in your own property, but buying brand-new property is out of the question; there is a very simple answer to it. The most sensible and well thought-out decision would be to employ the services of a brokerage firm or agency in order to reduce hassles on your end. Conduct sufficient research to ensure that the brokers you hire are honest and ethical in their business. It is best if you can find a brokerage firm that will guide you through the entire process, and also handle minute details to make sure your investment is worthwhile.