Pitfalls to look for when buying property in Sri Lanka

• Do not fall in love with the property

Love is blind. And when you fall in love, it can be easily recognised by others. In this case the seller. This gives the seller the advantage of increasing the price. Your infatuation can lead to a bad investment. This is the very first thing that could make you blindly do the other mistakes mentioned below. Always keep cool and keep in mind the reason why you’re buying the house. It will guide you in your darkest moments.

• Rush in

Buying a new property is a huge investment. Well that is if you’re not a billionaire. The safest duration to complete the buying process is one to two years. Yes. The reason is that you need to know what you’re buying and also understand the ins and outs of the real-estate market and its trends.  Doing proper homework can not only save you on hidden costs. But also give you the knowledge and know how so that sellers can’t fool you.

• Cheap can be Expensive

Oh!! An Apartment for a Hundred Rupees.  Let’s buy it. There is no such thing as cheap apartment deals. Watch out for these. You can try in and look for the very cheapest option and finish the deal. Next thing you know your house is robbed.  There is always a reason why a property is vacant. Bad neighbourhood, criminal activity, Drug hubs. Property is too old, water leakages, cracks, pest infestations. Buying such a home can result in two options. Firstly, you have to buy another one but have to wait till you can sell the one you just bought at a much lesser price. Secondly, you have to spend huge amount of money to fix the problems so that you can live in that property.

• Never go for Verbal agreements

Real-estate lawyers are there for a reason. Never ever go for verbal agreements.  Most of the time, the seller is a friend or a relative’s friend. But remember you’re the one investing. If you’re not careful you will be the one loosing. Sales is never complete unless it is stamped and endorsed through legal transfer of ownership from seller to the buyer. And lawyers are the only people who can do this for you.

So next time you’re thinking about buying a property in Colombo, Sri Lanka please keep these points in mind.