Things to Consider Before Buying Your First Home

Things to Consider Before Buying Your First Home

The following contribution is from another author.

Are you considering taking the leap and buying your very first piece of real estate? If so, there are probably lots of questions floating around in your mind waiting to be answered. Purchasing a property is always a significant step, and especially so if it is your first home purchase. When buying real estate, it pays to be cautious. No one wants to make the wrong decision when there is so much money at stake. Property is a unique purchase; not only does it have a personal meaning, as it is your home; but it also needs to be thought of as a business decision as it is very likely to be the largest investment that you will make. 

Thinking about your decision carefully, and weighing up every option is essential when purchasing real estate. To make the right choice, you must have enough knowledge to be able to make an informed purchase decision. Buying a home is something that you should never do on impulse. The following tips suggest the things that you may want to consider before you buy your first home:

Independent Living

If you are currently living with your folks right now, your most significant consideration is whether you are ready to live independently. Moving out of that family home for the first time is a big step and can be a liberating experience. However, not everyone is prepared to live independently at the same time. There is no right time or wrong time to start living independently, but purchasing a home sooner should mean that you pay off your loan at a younger age.

Single-Living or Cohabiting?

If you decide that now is the perfect time for you to move out of the family home and into your own property you will need to consider whether you plan to live alone or co-habit with one or more people. There are a couple of options available; you may be planning to purchase a property with your partner or a friend. Purchasing a property with another person should, in theory, enable you to borrow more money and buy a bigger or better home. However, before buying real estate in joint-ownership, you will need to consider what will happen if one or both of you decide to move out, and what will happen to the property in that situation. Would one of you buy the other one out of the house? Or, would you sell up and split the re-sale profit between you?

If you do not want to live alone, but do not want to buy a property jointly, you could consider renting out a room. Renting out a room enables you to have company at home, but with the added bonus of a tenant contributing money towards the bills and paying rent.

Budget Considerations

Budget is always one of the most significant considerations to keep in mind when purchasing a property. Planning ahead is essential when calculating your finances for a house purchase. It is a wise idea to begin saving for your hdb downpayment as soon as possible. Starting to save early will ensure that you have enough money behind you to proceed quickly and make an offer when you find the right property.

As well as saving for your downpayment, you will also need to consider how much you are able to borrow to fund your real estate purchase. Affordability is something that you will need to think about. Calculating your regular income versus your outgoings will help you to ascertain how much you can borrow along with how much you can realistically afford to repay each month. The bigger your downpayment, the less money that you will need to borrow and the lower your repayments should become. However, you will also need funds set aside to cover the costs related to the purchase and the money required to pay removal companies etc.

Picking a Perfect Location

Choosing where to live is an exciting prospect, and gives you the opportunity to think carefully about the areas of your town or city that best suit your lifestyle. Do you like the idea of owning an apartment in a central location so that you can enjoy an active social life and plenty of amenities? Or, do you prefer the thought of living somewhere that is a little more peaceful? Deciding on a location is a personal choice, so thinking about your perfect place is vital to ensure that you choose a property that matches your needs.

Author

Eric is the creator of At Home in the Future and has been a passionate fan of the future since he was seven. He's a web developer by trade, and serves as the Director of Communication and Technology for a large church in Nashville, TN (where he and his family are building a high tech home in the woods).

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