Advertising
Advertising

5 Reasons Why You Should Choose Properties Carefully

5 Reasons Why You Should Choose Properties Carefully

Buying a property or looking for rent is a hell of a task. A lot of work needs to be done which could be daunting for many, thus from the decision to invest in property to actual buying your rental property, a lot of work needs to be done.

Since buying a house or being on rent is an emotional process, as there is always a dream of making a place a home where one will have moments they have dreamed of. So many people fall prey because of these emotions and make hasty decisions while selecting any property.

The common mistakes people make are falling in love with the place they can’t afford, assuming there is nothing better out in the market, being desperate, overlooking important flaws, rushing to put in an offer, offering too much if you like property and dragging your feet if you like a property.

Advertising

Since buying property has a number of implications so it is important to keep emotions in check and make the rational decisions. So while considering any property, make sure to follow the following things:

  • Know what you can pay.
  • Think of features you are looking for.
  • Choose rental type.

No doubt it is true that you can complete this daunting task on your own and market your property through an owner website like assetcolumn, but only if one has time to do this as a part-time job. Thus, an agent might be of great help to match your property requirement with the perfect match at a faster rate as they are aware of the market with a wider scope. The following are some reasons why you should hire real estate agents:

1. More convenience

It’s the job of a real estate agent to act as an intermediate person between sellers and buyers. Thus, he or she will have access to all properties listed by the other agents. For example, if one is looking to buy property, a real estate agent will hunt down all that will meet your criteria, get in touch with sellers and make appointments to view the property.

Advertising

So this will ease your work as they will do all the things regarding appointment and finding you just need to view. Similarly, if you are selling a home yourself, then you have to set up the calls with interested parties make appointments and answer questions yourself. And one has to keep in mind all the potential buyers and respond them quickly.

2. Negotiation is tricky

Many people don’t like the idea of doing a real estate deal through agents as they feel direct negotiation between sellers and buyers is much more transparent and it lets the involved parties to look after their own interests which is true as it results in transparency.

But, this is not true in all cases because as a buyer, you cannot express all the concerns to the owner but it’s easy to explain those to a real estate agent so they can act as a messenger as they are in a better position to negotiate.

Advertising

Always keep in mind that the owner can reject a buyer’s offer for any reason, even their attitude for example, so the agent can help by speaking on your behalf and handle the situation in a better way. The same goes for the seller, who can be benefited by a real estate agent who will convey their interests to buyers without turning them off about price or because of some other concern.

3. Handling of contracts

One should always draft the contract during buying and selling of property so as to ensure that what you are getting is a part of the deal or you can back out of the deal at any time if certain conditions are not met.

Thus, a real estate agent deals with the conditions and contracts on a regular basis and they are familiar with clauses which need to be drafted as part of the contract – what can be removed and how to use the contract for your interests, whether one is selling or buying property.

Advertising

4. Neighborhood awareness

The agents have complete knowledge about the neighborhood as well. They can collect information and hand it over to you and also inform you where you can find schools, supermarkets, and other demographics. All these details are highly beneficial while looking for property, particularly in an unfamiliar place. So one needs someone reliable and a person who is aware of the neighborhood.

5. Guidance of price

Agents don’t bind you to a particular price of a property but can guide you to settling on a price. Agents can guide clients to make the right choices for themselves. And at the same time, they will provide all the data for the buyers to make a choice based on price and amenities provided. Thus, based on demand and conditions, market supply real estate agents will devise a negotiation strategy.

Everything has its own pros and cons so it’s totally dependent on the individual to decide. As far as my experience goes, is it is always better to hire some real estate agent while looking for a new property if you are new in place as they have a number of referrals. Since the agents have great capabilities to make clients satisfied and happy, many agents will mail you periodically all the updates about the market to keep you posted so your commission will be fruitful.

More by this author

Abhay Jeet Mishra

Writer at Lifehack & Enterested.com

Best 5 Free Partition Management Software for Windows 10 How to Constantly Make Right Decisions When Life Is Full of Uncertainties 11 College Degrees That Can Make You Feel Easier in the Job Market How Anyone Can Be a Star Candidate and Impress an Employer in 9 Seconds I Love You: To Say, or Not to Say

Trending in Money

1 How to Set Financial Goals and Actually Meet Them 2 25 Killer Sites For Free Online Education 3 10 Recession-Proof Debt Consolidation Tips 4 The Definitive Guide to Get out of Debt Fast (and Forever) 5 25 Easy Tips on How to Save Money Fast

Read Next

Advertising
Advertising
Advertising

Last Updated on September 2, 2020

How to Set Financial Goals and Actually Meet Them

How to Set Financial Goals and Actually Meet Them

Personal finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. That’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

In this article, we will explore ways to set financial goals and actually meet them with ease.

4 Steps to Setting Financial Goals

Though setting financial goals might seem to be a daunting task, if one has the will and clarity of thought, it is rather easy. Try using these steps to get you started.

1. Be Clear About the Objectives

Any goal without a clear objective is nothing more than a pipe dream, and this couldn’t be more true for financial matters.

It is often said that savings is nothing but deferred consumption. Therefore, if you are saving today, then you should be crystal clear about what it’s for. It could be anything, including your child’s education, retirement, marriage, that dream vacation, fancy car, etc.

Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives that you foresee in the future and put a value to each.

2. Keep Goals Realistic

It’s good to be an optimistic person but being a Pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going beyond what you can realistically achieve will definitely hurt your chances of making meaningful progress.

It’s important that you keep your goals realistic, as it will help you stay the course and keep you motivated throughout the journey.

3. Account for Inflation

Ronald Reagan once said: “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” This quote sums up what inflation could do your financial goals.

Therefore, account for inflation[1] whenever you are putting a monetary value to a financial objective that is far into the future.

For example, if one of your financial goal is your son’s college education, which is 15 years from now, then inflation would increase the monetary burden by more than 50% if inflation is a mere 3%. Always account for this to avoid falling short of your goals.

Advertising

4. Short Term Vs Long Term

Just like every calorie is not the same, the approach to achieving every financial goal will not be the same. It’s important to bifurcate goals into short-term and long-term.

As a rule of thumb, any financial goal that is due in next 3 years should be termed as a short-term goal. Any longer duration goals are to be classified as long-term goals. This bifurcation of goals into short-term vs long-term will help in choosing the right investment instrument to achieve them.

By now, you should be ready with your list of financial goals. Now, it’s time to go all out and achieve them.

How to Achieve Your Financial Goals

Whenever we talk about chasing any financial goal, it is usually a two-step process:

  • Ensuring healthy savings
  • Making smart investments

You will need to save enough and invest those savings wisely so that they grow over a period of time to help you achieve goals.

Ensuring Healthy Savings

Self-realization is the best form of realization, and unless you decide what your current financial position is, you aren’t heading anywhere.

This is the focal point from where you start your journey of achieving financial goals.

1. Track Expenses

The first and the foremost thing to be done is to track your spending. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you will be surprised by how small expenses add up to a sizable amount.

Also categorize those expenses into different buckets so that you know which bucket is eating most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pumping up your savings rate.

If you’re not sure where to start when tracking expenses, this article may be able to help.

2. Pay Yourself First

Generally, savings come after all the expenses have been taken care of. This is a classic mistake when setting financial goals. We pay ourselves last!

Advertising

Ideally, this should be planned upside down. We should be paying ourselves first and then to the world, i.e. we should be taking out the planned saving amount first and manage all the expenses from the rest.

The best way to actually implement this is to put the savings on automatic mode, i.e. money flowing automatically into different financial instruments (mutual funds, retirement accounts, etc) every month.

Taking the automatic route will help release some control and compel us to manage what’s left, increasing the savings rate.

3. Make a Plan and Vow to Stick With It

Learning to create a budget is the best way to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be organized

Nowadays, several money management apps can help you do this automatically.

At first, you may not be able to stick to your plans completely, but don’t let that become a reason why you stop budgeting entirely.

Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options, and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

4. Make Savings a Habit and Not a Goal

In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that, in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

Make savings a habit rather than a goal. While it might seem to be counterintuitive to many, there are some deft ways of doing it. For example:

  • Always eat out (if at all) during weekdays rather than weekends. Weekends are more expensive.
  • If you are a travel buff, try to travel during off-season. You’ll spend significantly less.
  • If you go shopping, always look out for coupons and see where can you get the best deal.

The key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice, which will be harder to sustain over a period of time.

Advertising

5. Talk About It

Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission.

Therefore, in order to stay the course, surround yourself with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

6. Maintain a Journal

For some people, writing helps a great deal in making sure that they achieve what they plan.

If you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

When you have a written commitment on paper, you are going to feel more energized to follow the plan and stick to it. Moreover, it is going to be a lot easier for you to track your progress.

Making Smart Investments

Savings by themselves don’t take anyone too far. However, savings, when invested wisely, can do wonders.

1. Consult a Financial Advisor

Investment doesn’t come naturally to most of us, so it’s wise to consult a financial advisor.

Talk to him/her about your financial goals and savings, and then seek advice for the best investment instruments to achieve your goals.

2. Choose Your Investment Instrument Wisely

Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about the common ones, like a savings account, Roth IRA, and others.

Just like “no one is born a criminal,” no investment instrument is bad or good. It is the application of that instrument that makes all the difference[2].

As a general rule, for all your short-term financial goals, choose an investment instrument that has debt nature, for example fixed deposits, debt mutual funds, etc. The reason for going for debt instruments is that chances of capital loss is less compared to equity instruments.

Advertising

3. Compounding Is the Eighth Wonder

Einstein once remarked about compounding:

“Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.”

Use compound interest when setting financial goals

    Make friends with this wonder kid. The sooner you become friends with it, the quicker you will reach closer to your financial goals.

    Start saving early so that time is on your side to help you bear the fruits of compounding.

    4. Measure, Measure, Measure

    All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments and taking stock of how our investments are doing.

    If we don’t measure progress at the right times, we are shooting in the dark. We won’t know if our saving rate is appropriate or not, whether the financial advisor is doing a decent job, or whether we are moving closer to our target.

    Measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

    The Bottom Line

    Managing your extra money to achieve your short and long-term financial goals

    and live a debt-free life is doable for anyone who is willing to put in the time and effort. Use the tips above to get you started on your path to setting financial goals.

    More Tips on Financial Goals

    Featured photo credit: Micheile Henderson via unsplash.com

    Reference

    Read Next