To own a beautiful home is our primordial desire, and to be honest, it is quite an achievement. But many people rush themselves into getting a house before they are ready. Owning a home is marketed as a symbol of self-worth, security, and self-esteem, so often, we end up buying a home for the wrong reasons. Purchasing a property is a significant investment, and you don’t want to take a leap too soon.
Are you ready to be a homeowner? – You don’t want to buy a house just because everyone else around you is doing so! Neither should you invest in a house to avoid paying rent. You should get a home only if you want to be a homeowner and are planning on settling down at a place for a minimum of five years. Sometimes low mortgage rates can lure us. Although low mortgage rate are important you should not buy a home for that reason alone. Physical, mental, and financial readiness are required before purchasing a home.
If you have decided on getting yourself and your family a home, read further to go through some of the best tips and advice you need to consider before buying a home.
Assess your needs
The real estate market is swarming with loads of compelling and captivating offers and imagery. Don’t let temptations and your excitement cloud your senses. When you are out hunting for a home, be sure of what you need instead of allowing marketing gimmicks and advertising to influence your buying decision.
When exploring various real estate options, narrow down on properties that seem compatible with your current and future home requirements. Buying a house calls for significant investment, and it is something that is going to be a part of your life probably for a long time and so it is something that needs to be well thought out. You can figure out your needs by considering the following factors –
- House Size – When buying a house for your own use, you need to consider your family’s size to determine the size and number of rooms you would need in your home. If you are a young family who plans to expand in the future, choose the space accordingly. For members who work from home, there needs to be a place for a home office.
- Amenities – properties that feature several amenities can seem attractive to prospective home buyers. But the downside is that extra facilities come with a higher price tag, and not all of the additional amenities may be of value and use to you. Think about the essential and must-have amenities that you and your family might need for a comfortable living and zero down on properties that best suit your needs.
- Location – Location also plays a crucial role in comfortable living, and so it is something that needs considerable contemplation. Any property that catches your fancy must be in a safe and sound neighborhood. Plus, the location should be accessible by common modes of transport.
- Time of possession – another essential factor you need to contemplate is how long you can afford to wait before getting ownership of your new home. There are several options available for you, such as ready-to-move-in homes and some in under construction phases. Usually, the former is more favored, but both options have their benefits.
Figure Out The Costs And Determine Your Budget
Financial readiness is the crux of investing in a home. You need to determine your budget and make an affordable investment so that you don’t lose sleep after moving into your new home! Once you have an idea of your needs, the next step is to set a budget and find a property that falls within that budget. Consider these factors while budgeting –
- Study The Average Property Costs – Begin your budgeting by determining the average cost of properties in your desired locality along with the size of each house. Prices of properties will be influenced by the nature of the neighborhood, amenities in and around the house, and on the property promoter.
- Familiarize Yourself with Hidden Costs – While working out your budget, take into account the additional costs that are not in most cases revealed upfront. If you’re moving into a neighborhood with a homeowners association make sure to find out how much HOA fees are going to be in what’s included with them. The extra costs come in the form of renovations and registration charges at the time of purchase. These costs also need to be included in your budget. Moreover, once you have acquired the home, you will need to pay taxes and frequently spend on maintenance of your home.
So you have gathered your basic home requirements and planned a budget, now is the time to narrow down on potential properties. If you are able to shortlist a few, you need to visit each one of them. A visit helps you get the feel of the space and find out if there are any shortcomings. Visiting the property lets you know if the house can make you feel at home. To avoid risks and to be on the safer side, consider looking at properties that are promoted by reputable real estate companies. A well-established real estate agent or firm will save you a lot of trouble.
Home inspections should never be skipped as these are an essential part of buying a home. Getting a home inspector to inspect the place lets you know of any structural damage and any other additional repair costs you may have to bear. An inspection will let you know of any issues that went unnoticed and how honest the homeowners were in their listing.
Plan Out Your Payment Method
When you plan to get a ready-to-move-in home, you will need to make the complete payment upfront to receive its ownership. If you have a substantial bank balance that can support your purchase, it is always advisable to buy your home with your own cash.
For those who are short on cash, you can get a home loan. You will be required to make a 15-20 percent down payment of the home value when getting a house on credit. You can pay the rest of the amount over an agreed tenure of the loan with its interest. Interest rates vary from bank to bank, and they can also be fixed or floating. You can discuss this matter with your bank/financier in detail to assess its viability.
Some loaners can fund your home purchase without needing any down payment. This might sound like a comfortable arrangement, but you will end up paying and increased interest and other servicing charges with this sort of deal.
Buying a home for you and your family is a significant milestone and an emotional event. A home is a personal space where you will be spending a significant amount of time, and so you need to invest in a property that meets your needs, fits your budget, and offers a comfortable living experience. The tips that we have mentioned above are sure to guide you to make a sensible and intelligent decision; after all, it’s a lifetime investment. Therefore, you need to do proper contemplation before agreeing on a seemingly attractive and tempting offer.
Make sure to make a choice that will add to your happiness, and years go by.