That anyone can buy a house or manage the rental of an apartment is half true. Real Estate investment attracts all kinds of people because it is seen as an easy business to understand. Whether the house is an investment or to live, these are some of the frequent mistakes that should be avoided.
First. Be willing to spend thousands of dollars on the purchase of a house but not to invest $200 in a lawyer. You should neither reserve the house nor sign an earning contract or a lease with an option to buy and, let us not say a sale, without having a lawyer next to negotiate on your behalf and defend your interests.
Second. Do not spend time and effort to understand well what is going to be signed. In Rosales’ opinion, it is irrational not to spend an afternoon at the lawyer or a morning at the notary’s office to know well what is going to be signed before going into debt for life. The deeds of sale, specifically, are in the notary three days before, and the notary, at the time possible, has to advise and clarify any doubt for free. The deeds of the mortgages of some entities are expected to be consulted in advance as of January.
Third. To think that the real estate agency or the financial entity will defend our rights instead of selling us the most profitable product. Search and compare are imposed. This belief is the mother of the previous two, and the antidote is to advise and spend as much time as necessary. “Whoever signs in five minutes pays the consequences for a lifetime,” Rosales warns.
Fourth. Buy a home exceeding the needs and payment possibilities. A young man who, to emancipate himself buys a house for a lifetime, without certainty of being able to pay the mortgage when interest rates rise, will save that 10% of paperwork and taxes that he would have to pay if he later buys a larger apartment. Still, you will not run the risk of losing everything.
Fifth. With just a dating relationship, getting into a purchase and a mortgage is far-fetched. And the error is even greater in cases where you live and have children without registering as a common-law partner or getting married. Situations such as marriage are well regulated. It is known what to expect when the relationship is initiated, developed, or extinguished by separation or death. In the case of courtship, it is appropriate to agree on rules and raise them to public deed to set the proportion of the mortgage that each one will pay.
Sixth. Request that parents or a family member endorse. “What we call bank guarantee to ask for a mortgage should never be from the family,” explains Rosales, who argues that “he is a perverse figure.” And he adds, if the financial institution distrusts that the loan can be repaid, it should not give it.
Seventh. Choosing a home without making sure of its proximity to equipment or means of transport and without calculating what is going to be invested in time and fuel for life is as absurd as buying a new apartment without taking into account the community of owners. Daniel Loscertales, president of the legal editorial, warns that “it is not unusual for a block of recent construction to have several homes in the hands of the developer who does not pay the community fees and, if it goes into bankruptcy proceedings, the rest of the owners will have to be paying those fees for years if they don’t want to be without services, such as the goal or the heating.”
Eighth. Have debts and, not to lose the house, try to give it to the child, simulating a sale or donation. It is considered an asset uprising. It would be a fraud if the person who donates the house did not own reserve assets to answer for his debts. And, by the way, the son will respond to the father’s debts, says Rosales.
Ninth. Give unlimited power, for example, for the sale of housing. You should always limit yourself in time. Renewing it means about $70. And, also “you have to ask for and keep a simple copy to make it easier to revoke,” advises Rosales.
Tenth. Rent a property without taking precautions on the solvency of tenants. “The rent is protected by article 6 of the Law on Urban Leases, which prevents any agreement that harms or is contrary to the law itself.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.