There are thousands of Internet sites devoted to advice (not always totally sincere) intended to help any wanting to purchase a home make a sound financial decision. Problem is, in Bermuda, with the ever escalating pursuit of a home, any home, many buyers are lucky if they have five minutes to make the biggest decision of their lives. Wait, and the next family in line will snatch the house out from under you. Thus, most Bermudian real estate sold in the last few years is presented in 'as is condition' ? take it or it will be taken from you (at a higher price).

This is generally not the case in the United States (yes, there are hot spots), particularly if you are looking in an area of good but not inflammatory, real estate growth. The first critical component is whether to consider a single family dwelling or a condominium structure. These two methods of holding title to property are quite different and we will explore them separately later. In general, though, developing a house shopping checklist will need to take into consideration most of the factors listed below. ? What has been the turnover in the area? Is it in an older established community where it is easy to find resale historical values? Newer developments have no track record making it harder to figure out if you are buying at the top, median, or low of the local market. How many times has the market bottomed out? Are there hundreds of units just like yours, or is this one far pricier than all the others in the neighbourhood? ? Are you near congestion and heavy traffic? Is the area sliding downhill into obsolescence, or is it over built? How many new schools have been built in the last ten years? What type of land does your real estate sit on, reclaimed landfill, near creek overflows, unstable or environmentally dirty (remember Love Canal), evidence of radon in homes, or other contaminants in water. Single family versus apartments, kinds of tenants, long term leases or tenant at will arrangements. Can you find a good property management group? how close to schools, parks, shopping, hospitals, golf courses, public transportation, good highways and other areas of interest? Is the town financially healthy, is it clean, bright, tolerant and liveable? garbage pickup (no kidding, in some towns you have to make your own dump runs) water and wells (where does it come from), septic systems or waste treatment plants, police presence, fire patrols, street clearing (snow and ice). Lack or scarcity of any of these resources means more maintenance charges for you. how often and how much have real estate taxes increased, examine history of special assessments, what is population inflow per week, per year? How many new schools have been built? Has the town floated any large bonds? Taxpayers will ultimately bear the burden of repayment. Does the state reimburse any school costs/Medicaid, etc. Get a good sense of how much it costs each year to run the town. for those planning on residing in their new second home (part or full time) is the majority older, retired, or is the town full of transients and younger generations. Are there any people like you, your average age, average income with common interests that you would want to build a community with. Don't be swayed by those retirement in the sunset ads? One of the hardest adjustments is to find yourself in a group of people, all of whom are significantly wealthier (or otherwise very different) from you.

The House Itself

It is highly recommended to have your purchase contract stated subject to a thorough house inspection, similar to what is often performed here by engineering firms. Most real estate agencies will often offer the services of a company they are used to dealing with. It is your choice to hire an independent firm, if you feel that there may any hint of bias. It is always wise to remember that the real estate agent is not working for you, but for the seller, unless they carry the Representing the seller means they are empowered to get the best deal for them, not for you, however nice they seem.

A competent and professional inspection will include, at a minimum, a review of the following: How is the quality of the general construction? Sticks or bricks or modular home. Evidence of termites (yes, they are a scourge everywhere).How is the structural integrity of the foundation? Check for cracks, flaking or damaged masonry, water markings and efflorescence (whitish, chalky substance) as well as bowing, bulging or other irregularities, such as soft mortar. Is the inside damp or showing water penetration (stains, mildew/odours). Amusingly, our home in New Hampshire had an underground spring that ran right through the basement. It was the bane of our existence every spring and electric black out - the sump pump failed and the water backup turned the cellar into an in-house pond.Bricks ? Look for missing mortar, flaking or cracking? Wooden siding ? loose, missing or rotten siding, deteriorated paint. Vinyl siding, is it loose, has it discoloured? Exterior walls bowed, bulged or leaning? Are the downspouts extended away from the foundations?Is the chimney flue fully lined? Has there ever been a chimney fire? Lots of creosote on the inside walls?Approximate age of the roof? Estimated remaining life of the roof? condition of the roofing structure as well as the shingles? Is the ridge (peak) showing a sag, or is it straight and level? Are the downspouts extended away from the foundations? Look for problems with paint or caulking, and rotted wood components.

Are the windows new or older? Are they the original windows? How old are they?Check for deteriorated coverings or cracked ceramics, water staining, sloping or sagging.Randomly sample to check that the windows and doors work, walls are straight vertically and horizontally, cracked or loose plaster, stains, physical damage or previous repair evidence, any drywall seams or nails showing? If the house is old, has it been tested for lead paint?All fixtures secure? Note the condition of the tiles and caulking in the tub/shower area. Do faucets leak? Sufficient water pressure? Look for staining and rot under the counter-tops, randomly sample the operation of the cabinet doors and drawers.Type, style and age of heating & cooling systems. When were they last inspected or serviced? Type of water supply piping and drains ? any visible rust and corrosion? Size and age of electrical service ? are the outlets grounded? Visible wiring in good condition? Have there been any upgrades?Does the grade slope away from the house? Any settled/low areas next to the foundation, or cracked walks/driveway? Is the property lower than the street or neighbouring properties? Drainage into street tilted correctly? Large trees overwhelming house?

And you thought you just picked the one you liked. Next week, we discuss legal, financial, risk, tax and estate planning decisions in purchasing a foreign property.

Martha Harris Myron CPA/PFS CFP? is a VP and Senior Private Banker, Private Client Services, Bank of Bermuda Member HSBC Group. She specialises in providing comprehensive financial solutions for individuals and their families. She can be reached at 299-5578 E-mails can be sent to marthamyron@northrock.bm. The article expresses the opinion of the author alone. Under no circumstances is the content of this article to be taken as specific individual investment advice, nor as a recommendation to buy/ sell any investment product.