Purchasing a home is a big decision that should not be taken lightly. To help you get started, below is a list of things to consider before taking the plunge.
1. What Can You Afford?
Before you even start to consider purchasing a house, you have to make sure it’s something you can afford to do. Have your finances assessed by an accountant or financial consultant to find out what your price range will be.
2. Home Loans
Every bank or financial institution has different loans to suit different needs and incomes. Many banks, such as Heritage Bank, also provide prospective customers with convenient and practical home loan calculators. These calculators will take into account factors such as the loan amount, loan term, loan type, frequency of repayment, stamp duty, and insurance, giving you a clear indication of what your repayments will look like. Click here to discover more.
3. The Return
It is not a smart move to dive in without considering what the real estate market is like. This is only the first part of it though, as you also need to consider what the return on investment will be like 10, 20, or 30 years down the track.
4. Work with Professionals
As much as your parents’ advice is worth considering, the best advice you will receive is from someone who deals with house purchases every day. This includes an established real estate agency, and a financial consultant or accountant.
5. The Reason for Purchasing
Why are you buying this house in the first place? Knowing the answer to this question will help in narrowing down your search in regards to location, size and price. Consider whether you actually want to live in this house or if you simply want to buy the house as an investment.
6. What Your Needs Are
This refers to what your needs are now, as well as what your needs will be in the future. You need to consider space if you plan on having a family, as well as what the location is like. Is it safe? Is it close to schools?
7. The Neighbourhood
The neighbourhood is a vital component to consider before purchasing a house. It is worth researching neighbourhood information online for any future council developments or issues with the location.
8. Negotiating
If you’re like most people, the thought of negotiating on the costs of something as substantial as a house can be quite intimidating. You should feel in control of this decision at all times. Agents may negotiate for you, but they probably aren’t going to push as hard for it as you will.
9. Find Problems Early
Just because a house looks good on the surface doesn’t mean this is the case all the way to its foundations. Take the time to assess any possible issues the house may have, including mould, termite damage and water pressure. Everything counts when it comes to the final dollar amount exchanged.
10. Test It
Everyone has their own needs when it comes to what they expect from a home, and it’s important to tick these boxes. Visit the home at different times to understand what its surroundings are like; test the commute to work; and see what community activities or amenities are close by.
Research is of course the most important thing to do before purchasing a home, and doing this extensively in regards to the tips above will put you on the right track.