At the least, there can possibly be three reasons for buying a new home. You may have got married recently, or received your first paycheck, or saved enough money to shift out the rented accommodation. In any case, you have a lot of money in hand. And that is where people start making mistakes. Here we are to help you out.
Things to remember
- You need to keep in mind the style of house you want and the neighborhood you want to live in before you start shopping houses.
- Don’t judge a book by it’s cover. Same goes for houses. Check the property thoroughly. Take your time. Make multiple visits before finalizing one.
- Good properties are always on demand and they don’t stay on the market for too long. So you have to make a quick decision.
- Investing in an upcoming neighborhood will never go wrong.
- Have a wishlist in mind when looking at a house but also keep in mind that you won’t get your dream house just like that on the street.
- In cities, you have to sacrifice space.
- If it is an old property, then make sure that the plumbing works properly, fittings are in order, infrastructure is strong enough, electric systems aren’t overloaded. You cannot take any detail for granted.
- New houses will be expensive.
- Try not to take up apartments where a lot of tenants live because there maintenance won’t be given priority as it isn’t their own house.
- Plan your budget beforehand and stick to it.
- Rushing it is never the answer when it comes to buying houses. It is a matter of huge investment. Before taking any decision, think it through properly.
- You should be able to afford mortgage three times your income. This is the thumb rule of buying houses.
- Do not forget to keep aside one to two percent of the purchase price for the closing costs. It also will be useful for paying the land transfer tax and the lawyer.
- When you buy new, you have to put down 10 percent within six months or 15 percent within nine months. Also, until the place is registered, you can’t get title. Until you get title, you can’t place your mortgage, so during that time you’re paying what’s known as a phantom mortgage or an interim occupancy fee that goes toward nothing — it’s like rent.
Before making an offer
- Find out at what price the other houses in the neighborhood were sold and what amenities they had.
- Market decides the rate of a property.
- While negotiating with the sellers, start at the lowest possible value (which may not seem as an insult to them!)
- Information, preparation and realism are the three most important things when it comes to negotiation.
Congratulations may be too soon in order right now if you make a wrong move. It is very easy to make mistakes while shopping estate especially if you are a first time buyer. Beware of the schemes of the real estate agents.