Buying a home is difficult for most buyers; especially for first timers (first-time buyers), as attempting to buy your 1st home is an emotional and money roller coaster. However, if you’ are properly prepared, you have every possibility of finishing the ride excited, with your feet firmly planted in your house. After all, there loads of things to learn about during the process and, you are likely to worry about making mistakes.
The following are tips on what you can do to reduce the stress and worry:
Firstly, check your savings and how much you have to fund your purchase. Don’t contemplate shopping for a house until you are in a financial position to do so, i.e. ensuring you have a least 3 to 6 months of living expenses put aside – after, you have completed on your new home. Because, after you completed your home purchase, there are loads of other unplanned expenses, that would potentially pop-up. You will need, and should set aside, some cash for some unexpected expenditures, and not just for the big stuff.
Secondly, review your spending, i.e. your income and potential outgoings. You need to grasp precisely what proportion of your income you are spending monthly and what they are going on. These calculations can tell you a lot about the way a lot of your outgoings will be going out, particularly your mortgage payments and other standard, non-negotiable expenditures. You should setup a budget for everything; utilities, food, car or travel expenses, student loan re-payment, clothing, kids’ activities, recreational/leisure, retirement savings, regular savings, and any miscellaneous spending.
Thirdly, ensure that the house suits your needs and meets your requirements – immediate and possible long-term. Ensure the house meets the need of what you would want in your home without the need for any immediate major work, i.e. major upgrade or refurbishment. Having and knowing your “homeownership goals”, would help you make your mind up as to what kind of property and budget will assist you to reach those goals.
Fourthly, if what you are searching for is a very big house, then, it wise to retain some flexibility during your search. Don’t forget, you are creating a list for one of the most important purchases of your life, and, you need to have that purchase match each of your desires as closely as possible, without creating too much compromise that you may regret later. Create a listing of priorities beginning with the foremost vital needs.
For example:
- How many bedrooms do you want, versus how many bedrooms do you need?
- Do you wish to be close to relatives, railway stations, amenities, transport links, nearby retail outlets (for the all-important retail therapy!) or parks?
Fifth, determine what proportion of the initial cost you can afford. For example, the deposit (against the value of the property), stamp duty, survey, legal cost, insurance, Council/Property Tax and any other standard on-goings cost that are mandatory. Also think about any potential cost for repair or improvement upon completion.
Even if the house that you arrange to purchase seems to be perfect, there’s no substitute for having a trained skilled tradesman do an examination of the property for the standard, safety, and overall condition of your potential new home. This could be factored into any potential cost and would impact the final offer you make on the house with the vendor/seller. However, if the examination does not reveal any major fundamental problems, then you ought to be able to complete the purchase with very little snags.
Once you complete, signed the legal documents, and received the keys…. Congratulations! the new place is yours.
