How would your offer to buy an apartment in installment success?
In this article, you will know how your offer to buy an apartment in installments would success
In this article, you will know how your offer to buy an apartment in installments would success. Cash buyers are undoubtedly favored by most of the landlords. Even though, it should be noted that along with the recent rise in property prices, it has become difficult to purchase properties in cash, especially in the middle and high-class areas.
However, if you fail to pay 20% down payment of the entire price of the unit, this does not mean that you can’t compete with the cash buyer.
How would you act in case you have an insufficient cash amount?
Although you buy an apartment in installments, you can actually compete with the cash buyer in particular, because it might be in the interest of landlord to sell in installments rather than in cash to take the benefit of selling the housing unit with interest, which will exceed the price of selling same unit in cash. There are also some owners who prefer to get the funds within a certain number of years, so that they would feel that they had benefited from the sale process within several years.
Some frequent questions that would help you to compete with cash buyers
- Do you have 20% down payment of the unit?
- Does your current job have a good financial income?
- Do you have enough money to cover the deposit? would you still have other funds?
- Do you have any other debts?
- Do you have an active credit card?
If your answer for most of these questions is “yes”, then, you have a great opportunity to make an offer to buy your dream apartment, and take the owner’s approval of the installment idea.
Find out how you can compete with cash buyers of property
Be confident about your finances
You can frankly speak with your landlord about what do you do to earn your living? How much money do you spare to pay a down payment of the property? How much will your job enable you to easily pay the installment? What is your plan to pay these installments in case you lost or changed your job?
Prove your seriousness in buying the property
You can agree on all the details from the down payment, installments, and the number of years, even the contracts, in addition to when will you document them, and how would both of you guarantee your rights.
Know all your choices
Before talking about financial matters, you should know all your choices. Firstly, what would you do if you failed to pay the installments? Would you take a loan from the bank to reduce the amount of installment? Can you buy the apartment by the real estate financing? Is there another source of income? Once you understand all of your choices, you can easily discuss them with your landlord, so that he can rest assured that you have an alternative plan, in case you suffered from any problem preventing you from completing the payment.
You can increase your offer
As is customary, a buyer who pays in cash tries to reduce the price and get a discount. This can be your point of strength, as you can add some money as interest on the period of installments, so that the landlord will feel that he has earned more money.
Finally, you must do what you can to buy your dream home. You have to be realistic and count every step before taking it so that the landlord can trust you and believe in your confidence and ability to pay all installments without default.