Tips for new home buyers

There is no substitute for the joy that one experiences in buying the first house.



Most people have never bought a home before; and are actually first-time buyers. Buying a home is going to be the biggest investment that you will make in your life. Here are some tips to give you a lasting experience.




Location

This is a key factor that will affect the quality of life that you have in and around your home. Additionally, a better located property will get a much better resale value if you decide to sell.

Before you put in your life's saving into a property, you might want to consider renting in your desired location for a few months. It will give you a good flavor of what life could be like in the area. When thinking of a location, you must consider the following:



   Proximity of schools


  Commuting time to and from work


  Modes of transport around the area


  Social amenities and shopping convenience


  Electricity and Water supply




  Security





Don't budge from your budget

There are too many choices in the market.  You must understand what your budget is so that you can narrow your search into a manageable process. Otherwise, your real estate broker will spin you around. Give the broker your budget and tell them that it's not movable. Don't believe them when they say your budget is too low.



The budget is not just the cost of the property — it must include numerous non-obvious costs such as broker fees, lawyer’s fees, stamp duty, registration fees and home insurance premium. Also, if you are getting an old home, there might be renovation or redecoration costs involved.



Affordability

There is no point in searching for the house of your dreams in a neighborhood that you cannot afford to live in or keep up with its lifestyle.  You must weigh whether you have enough cash flow to support the lifestyle that comes with being part of such a place after you have paid for the property.



Do not stretch yourself and take a personal loan to fund the down payment towards the property. This will only increase your risk exposure. Ensure that you can naturally afford the down payment through your savings. Additionally, don't stretch your budget to get a more expensive home because that will mean stretching your mortgage installments payments. Remember to keep your mortgage installments payments manageable so that you can continue to afford the lifestyle you are accustomed.