When choosing a house, you must take into account the physical condition of the property to the legal aspects that will allow you to know if the home of your dreams compares to or is identified with your lodging needs and spending plan.
Purchasing a house or condo is speculation that ought not to be trifled with. For this reason, it is so necessary to take into account certain aspects before becoming the owner of your own house or apartment.
So here is the list of things that you should keep in mind before buying a property:
Be minimalist when choosing a home
The process of looking for a house is very exciting; it is easy to get carried away by the most significant properties, those with the best decoration, the best floors or the best furniture. Those shine a lot brighter than small properties with simpler finishes.
The fact of the matter is, you will pay more for that additional room and for the conveniences. The proposal is that you begin visiting houses with costs that are near what you have saved. If you prefer to see it differently, start from the bottom and work your way up in case you can’t find something that stands out or, as the properties meet your needs and fit your pocket.
When you start your search in reverse, that is, visiting and idealizing the largest and most luxurious houses, those that are often out of the budget of a first-time buyer, you run the risk of biasing against tiny houses or apartments. Your base of comparison will be that dream home that is not necessarily a good investment since buying it would mean a tremendous financial weight and not a step in the formation of your wealth.
Keep an eye on the mortgage you take
Buying a house or apartment through a mortgage loan is the best option, but paying it off before 15 years is ideal. Choosing to finance for a term of fewer than 30 years allows you to pay less interest in the financial institution. This is because the 15-year mortgage is not only much shorter (which means you will be paying more principal each month), but you will also have a lower interest rate.
Do not exceed 40% of your salary in the payment of a property.
This is a good rule of thumb for financial health when buying a home or apartment. The first thing you should consider is the monthly payments of your existing doubts; then, you will have to add the monthly payment of a mortgage with a term of 15 years. If the total adds up to more than 40% of your monthly salary, then you are risking living on a tightrope, financially speaking, so you will have to reconsider or discard the purchase of that property.
If you exceed that percentage, we suggest you continue saving to buy that property or try to find properties with a lower price. Do not forget that there are expenses when buying a house or apartment that you must pay on your own even when you are granted a mortgage loan, for example, the deeds, the payment of taxes, the fees of the notary public and the real estate agent.
Furnish with the basics
Unless you buy a semi-furnished or fully furnished property, you will have to spend a good amount of money to purchase basic furniture and appliances.
One of the first things you will discover in the first days you spend in your new home is that it can look a bit empty and austere. The temptation to fill it as soon as possible will be latent. However, it is best to cover those gaps with second-hand or cheaper furniture. That way, you will meet your needs instantly, and you can update them eventually.
Doing this little by little will protect your pocketbook. Of course, avoid buying furniture on credit so as not to increase your debts and, much less, risk your savings or your emergency fund.
It is essential that you buy a house for the right reasons.
It is expected that if you reach a certain age, get married or have your first child, family or friends begin to ask you when you will buy a house. Social Pressure can be solid, and the assumptions of others can impact your choices. Make sure that it really is a personal desire and that you live the circumstances that make you feel secure about that vital acquisition.
To become the owner of your own home, you need to be financially and emotionally ready. Not only can home provide you with security and a sense of accomplishment, but it can also help you be financially successful.
Define how much of what you have saved you can use, since banks or housing support institutions only lend on average up to 80% of the property’s value, so you must have that 20% previously to give the down payment and 5% more to cover the initial costs (appraisal, insurance, deeds, notary, the opening of credit, etc.).
If you are going to invest in a property, look for you to have the communication channels or services that you require, such as education, health, shops, security, transportation, recreation and supply. Avoid risk areas! What’s the significance here, that the property isn’t under high voltage lines, gas tanks, underground pipelines, close to gorges or territories in danger of flooding?
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.