Buying your first home?
Category Buying and Selling
Buying your first home is a big deal. It can be exciting and nerve wrecking at the same time, and, like doing any thing for the first time can come with a few surprises.
This is one of those life decisions that need to be taken seriously and with a little research you can go from nervous to confident quite easily. To help you do just that, here are a few tips which will help prepare you for this exciting investment.
- Work on your budget?
You need to take a good look at your budget, up until owning your own home you may not be aware of some of the costs involved. Along with the monthly bond repayments, there are fees such as; Homeowners association/Body corporate fees, utilities, property taxes and insurance. You will also need to think about maintenance costs and the time involved for upkeep. Knowing that you can comfortably afford a home and maintain your lifestyle will give you peace of mind.
Making an informed decision about your readiness to commit to a home is crucial.
Unless you are one of the very disciplined few who diligently save, you will probably need a bank loan in order to afford your first home. For that, you will need a good credit record.
Understanding your credit score is part of understanding your budget, you can check your credit score online. Get those bills paid up and improve your rating before you apply for a bond.
Once you know you are up to date, get in touch with a bond originator such as http://capcubed.com/ and get a pre-approval value, you will have a great idea of where you can start shopping.
- Decide on your list of features
Creating an outline of what you want and need in a home will help you to search more specifically and effectively. Having a list of needs and a list of wants will help you make a decision when it comes to crunch time.
Include in this list the areas you would like to live in. You can compare your needs to your wants... is your dream kitchen more important than a double garage? Is having the en-suite bathroom worth trading for a location close to the school your children might one day attend?
Try to remain flexible and consider the value of the property over time.
- Do some research
Buying a home is not like buying a pair of shoes. There are several additional fees to consider. There are two main fees involved in the purchase of your home, the Conveyancer fee and the bond originator fee. The total of these two fees should equate to about 8% of the property value.
Knowing this ahead of time is helpful, especially as the seller usually elects the transfer attorneys and fees will differ slightly form firm to firm. A good practice is to start saving the same day you sign your offer to purchase. Unlike a pair of shoes which come homme with you immediately, the transfer of a property takes on average 3 - 5 months.
Ask the though questions, find out about the homeowners' association if you are buying a free standing home, the Body corporate fees if buying sectional title. What are the rates and levies, if you are taking over a security contract, what is that fee? If you are currently renting, have you asked your landlord if they would like to sell to you? Knowledge is power.
- Enlist the help of an Estate Agent
Work with an agent who understands your chosen area. When you buy a car, you trust a mechanic to check the car and help you to decide if it is a worthwhile purchase.
A good agent will do the same, they will help you keep a level head and stay focused. They will be able to advise on the inner workings of the process of buying a house and on details you should consider. A good agent will be able to inform you about the various certificates needed before a transfer is legally allowed to be processed.
We hope that you feel more confident after reading these few pointers, Happy House Hunting!
Author: Andrew Giles