“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”-Theodore Roosevelt
Are you finally in the position where you can purchase your first loft apartment? There is no doubt that buying your first property, albeit for investment purposes or as your primary residence, is an exciting time. In fact, I love looking at the different options to decide which is the best property for my needs.
However, it is important to note that there are lots of things consider before you close on your new home. Questions such as can you put a deposit down or do you need a 100% mortgage loan to pay for your property, need to be asked and answered.
What is a Loft?
Before we look at responding to the most pertinent questions to help you with your residential property purchase, let’s look at what the definition of a loft apartment is:
Wikipedia states that a loft is “can be an upper storey or attic in a building, directly under the roof. Alternatively, a loft apartment refers to large adaptable open space, often converted for residential use (a converted loft) from some other use, often light industrial.”
Furthermore, Raleigh lofts are often converted from former industrial buildings. Therefore, it is safe to assume that a loft will be in, or close to the Central Business District (CBD).
Questions to ask before purchasing a loft apartment
Location: Investment or primary residence?
This issue is important because if you are purchasing a loft as an investment, you need to look at options that are in an area where there is a high demand for rentals. Otherwise, if you want to live in your new loft, you need to look in a location that is close to your place of work.
While you are considering whether you would like to live in your loft or rent it out, the overriding question to answer is whether you will get a high rate of return on your investment if you purchase the property in a particular location.
Cash Purchase or Mortgage bond?
Have you saved up enough money to pay cash for your new loft, or do you need to apply for a mortgage? While there is merit in purchasing the property cash, there are also reasons to apply for a mortgage, especially as a first-time buyer. Ergo, most banks offer first-time buyers additional incentives that are not offered to people who have purchased residential property before. Therefore, it is best to take sound financial advice to determine how to invest your cash so that you can realize the highest rate of return from your investment.
Additional monthly charges?
Part of purchasing a home is to budget for the monthly costs of owning and living in your own home. For example, utility bills, levies, as well as transport costs from your new home to your work all need to be taken into account when working out how much you can afford to spend on a home.