5 tips for buying your first home
Purchasing property is no easy feat. In fact it can be quite a daunting undertaking when you consider all of the variables.
Here are some tips to help you in your endeavour.
- Know your budget
Do not go into this exercise with unrealistic expectations. There is no point in falling in love with a "champagne" property when you have a "beer" budget. Therefore, we would advise that you get a pre-qualified loan before you start your property search.
- Location. Location. Location
I know we are in cliché territory here but this cliché is dead-right. The location of the property you are interested in will have an immediate impact on you and your family- like travel times, the relationship you have with your neighbours and perhaps most importantly, your safety.
But the property location also has long term effects. When the time comes to sell the property, the location will play a large part in its resell value.
- Know your stuff
Do your research. Compare the sale prices of houses in the area as well as similar offerings in similar suburbs. It is not always possible to compare apples with apples, but having a rough idea of property prices will go a long way to informing your expectations.
Also if a property catches your eye, find out how long it has been on the market. The longer a house has been on the market, the bigger the chance that it is overpriced.
- Check it out
Go to the property that has caught your eye and spend some time there. Do not be impulsive.
If you like the look of the place, it may be worth your while to take a friend in-the-know to view the house too. They may be able to advise you on maintenance issues as well as spot underlying problems that would be undetectable to the layman, like us.
- Shop around
Don't just assume that your current banking institution will grant you the best mortgage rate, shop around.
Once you have picked the lender of choice, you will need to determine if you will be going with a fixed rate mortgage or an adjustable rate. A fixed rate offers predictable monthly payments for the period of the loan. Whereas an adjustable rate means lower rates and payments now, you may pay higher payments in future years.
Buying property is a hugely important decision but with a little bit of research and knowledge behind you, informed decisions are possible.
Author: Xoliswa Tini Properties