The Beginner’s Guide To Protecting Your New Property Investment — 5 Essential Steps To Keep Your Investment Safe
So you’ve just bought a new property, or are looking to invest, but you’re feeling a little nervous about the investment?
You’re definitely not alone, and it’s not surprising — property can be expensive, and you may have a significant amount of your savings, and your future, invested in it.
Whether you’re a first-time buyer, or just looking to learn a bit more about how to add some extra layers of security, there are some steps you can take — and some that are practically essential.
If you haven’t made your purchase yet, stop right now and look into getting title insurance for your new property before you do anything else.
It’s one of the easiest and most effective steps for making sure that your investment doesn’t run into unexpected problems.
Here are a few of the steps you can — and should — take to protect your new property investment.
- Make Patience A Priority
While it’s tempting to rush in and grab your investment as soon as possible, this is usually not the best idea.
In some cases, it may be the only way to secure a property before another buyer, but in most situations, it can cause people to overlook flaws in the property, the paperwork, or the process.
Taking a few extra days or a week to make sure everything is in order will provide you with peace of mind and more protection from problems.
2. Disaster & Damage Insurance
You may think that before you buy a property is too soon to be thinking about insurance, but it’s actually the perfect time.
Before you buy, you should talk to several insurance companies to determine what kind of insurance is available, what types you may need, and how much it’s going to cost.
While you may not have heard of title insurance, it’s saved many people from nightmare scenarios that would have ruined them otherwise.
It protects you in case of land claims from the owner of the home, which happen a lot more frequently than you might expect.
While they’re occasionally the result of scammers, they can also occur due to inheritance lawsuits, leans, divorces, and similar situations — none of which you want to be caught in the middle of.
4. Get 2 Inspections
Did you already have an inspection of the new property?
That’s great — and if you’re satisfied, even better.
If you have any doubts at all about the inspector doing a less-than-perfect job or missing anything important, then consider getting a second inspection.
The cost is minimal compared to the investment in the property, and it’s very common that a second inspection will find something the first one missed — though hopefully nothing too serious.
5. Make Friends With The Neighbors
While many people do this as a normal step when purchasing a new property — it’s about more than just courtesy.
The neighbors may know interesting things about your new property that weren’t discussed with the real estate agent, and they can often provide helpful tips about the neighborhood.
Your new property is likely going to be a big part of your future, so it’s important to protect your investment in every way you can — for your finances and your peace of mind.
Don’t forget to double-check all your paperwork with a legal expert — and do yourself a favor, don’t skip the title insurance.
Sometimes situations happen that can leave you stuck in the middle, unexpectedly on the hook for a very expensive property that is hanging in legal limbo — so it’s worth being prepared.