3 Tips You Need to Know When Buying a House
Purchasing a home is one of the most significant investments you can make in your life. Taking the time to research different houses for sale, shop for mortgages, and evaluate your finances can make all the difference when it comes to buying the home you love. If you are considering becoming a homeowner shortly, here are three useful tips to keep in mind.
The adage is that the best time to start saving is ten years ago. If you haven't been investing in your savings accounts, the second-best time is now. Having considerable savings will help, not only in buying the home but also in lowering interest rates and improving mortgage terms.
In Australia, property owners expect new homeowners to put down five per cent of the total purchase price of the home. If you are looking at houses in the range of $400,000 you will need a minimum of $20,000. Ideally, prospective homeowners should have 20 per cent of the value in the initial deposit.
Knowing how much you need to save is step one in the process. This figure may change based on your eligibility for conventional mortgage loans (which can have down payments as low as three per cent).
Research the Area Before Buying a Home
It is difficult to overstate the importance of research when it comes to buying a home. You have probably heard, for instance, that location is everything. There are plenty of other factors that can dictate its quality on an individual basis.
One of the essential factors is the home market. Knowing the price values on a neighbourhood-by-neighbourhood level can allow you to align your budget and preferences better. Here are some other things to research, too:
Parks, trails, and nature
Natural disaster risks
Levels of homeownership
Don’t Buy the First House You Visit
Even if the house for sale is at a bargain price and you loved your tour, don't pull the trigger immediately. House buying is a decision best reserved for pragmatism instead of emotions. If you are in love with the first home you see and must buy it, you can always go back later.
This strategy forces individuals and couples to see a couple of options before settling on a home. Taking multiple tours may alert you to things you did not consider during previous visits. That can include such things as the house’s proximity to good schools or the need for pest inspections.
Having several house visits under your belt will also provide leverage when negotiating the final price. You will be able to work with the property owner based on sizes, prices, and locations of your other top choices. Having multiple high-quality options will also make it easier to walk away, in case the real estate agent refuses to budge.