- 1 - Avoid overbuying
- 2 - Check out routes to schools and work
- 3 - Be realistic about your budget and your goals
- 4 - Save a deposit
- 5 - Check title deeds and zoning
The journey of buying a home can be very daunting, especially if you are a first-time home buyer.
Only experience can make you a seasoned homeowner, but at least you have taken the first step and are well on your way there.
There are many things that you might overlook initially that won’t have a major effect on the process, but then, there are things that you simply cannot miss unless you want the deal to go south.
Take it from professional homeowners and learn from these five habits they learned in becoming accomplished home buyers:
1 – Avoid overbuying
Overbuying can be the death of any property dream that you might have.
It is vital that you know exactly how much you can afford. Get pre-approved before you put in an offer so that you know what the bank is willing to lend you.
You should also take any additional costs like moving and transfer costs into consideration.
Draw up a detailed budget that you can use every month that provides for insurance, city council rates, services charges, monthly levies, maintenance, as well as the home loan bond repayment.
2 – Check out routes to schools and work
If you are moving to a brand new town, check out which routes are easiest to get to work, or to schools if you have kids.
Also, see where the nearest shopping centers are. Living close to these amenities can be very advantageous.
If you are moving further away from your job for a certain reason, but still in the same city, you need to then see which routes can get you there the fastest. The last thing you want to do is spend money on petrol or carpooling. And yes, access to public transport can also be a great help.
3 – Be realistic about your budget and your goals
Don’t waste too much time searching for the perfect home with all the trimmings.
The chances are high that you are going to have to compromise somewhere along the line.
It would be a good idea for you to make a list of things that you need in a home and the things that you want. It will help you decide what you are willing to negotiate on and what you are willing to completely scrap.
Compromise on the non-essentials in order to make the most of the opportunities and potential that the house has, especially if it can offer you lower interest rates.
4 – Save a deposit
It might be tempting to seek 100% financing, but in reality, the chances are very slim that the average home buyer is going to be approved for the full purchase amount.
Banks and other lenders usually want a 10%-20% deposit before they approve a loan. A deposit will ensure that your interests are much lower and you will be able to look at more favorable options when it is time for an upgrade.
It might cost you a little bit extra in the beginning, but it will definitely turn out to be a huge saving over the long-term.
5 – Check title deeds and zoning
Make sure that you get the necessary documentation from a real estate agent that gives you information about the title deed and the zoning of a house. Most of the time, s/he will ask the conveyancing attorneys to investigate these matters!
You don’t want to buy a house that has several restrictions attached to it.
Also, make sure what the status is of the houses surrounding you. You might just buy a house only to find out that the house next to you is being zoned for a shopping center.
Traffic magnets like these can make life really unpleasant, especially if you want peace and quiet.