Congratulations! Your savings can buy a house for yourself finally. So, what you going to do next? Buying a house can make people headache a lot. In order to not to waste your savings to buy a house that will have problems in the future. This is the article you must continue read on to find out what are the things you should aware before buying a house.
13 Things You Should Aware Before Buying a House
The value of a property increases exponentially in rapidly developing areas and hot spots that have fast population growth and abundant economic activities. This is because the location of a property affects a buyer’s lifestyle.
👌 If you already have a decision of the property location, you shouldn’t be regret of it in the future. If you buy a house for your own stay, you must do the research that which location that suit to your living style. While if you buy a house for investment purpose, you should do the research as well. Searching for the location that the property can rent out easily such as nearby institution university college or office area.
② Type of property
If you are buying a property to live in, seek for comfort and space. If you are investing, go for properties that offer high returns. Apartment (Studio) and suites (SOHO) usually bring good returns.
👌 Before choosing any property type, do aware of your financial affordability. If you have budget on buying a property, do search for the house that in low price such as flat or apply for government house. While if you don’t have any budget bothering on buying a house, condo, apartment, or landed house could be a right choice for you. Do make sure which type of property that you prefer the most.
③ Furniture and Decoration
Most buyers that intend to live in the house they buy would prefer a place where they can decorate and transform into the space of their dreams. However, investors usually go for houses that are fully furnished with appliances available, so that they can immediately find tenants.
👌 Yes, yes.. while you bought a house successfully, its time to choose the furniture to fill up your new house. But do make sure your financial affordability, don’t choose the high tech furniture if your budget is limited. While for decoration matter, try to do-it-yourself, so you can save lot of money on decoration fees. Besides, you can choose the house with fully furnished like the above said, so you can save lot of money on furniture purchase and decoration. This type of property usually expensive, though!
④ Original price
Most house owners won’t mind spending a little more money into renovation and decoration. For investors, the key to earning profit is to get the lowest price possible.
👌 Before buying any property, do search the current market price of the property itself. Be a smart house buyer, don’t let others have the chance to raise up the property price.
⑤ Do not put all eggs into one basket
Some buyers make the mistake of investing all of their savings onto a house, which is a very bad decision that may land them into heavy debts.
👌 Strongly agreed with this point! Don’t use all of your savings to buy a house, do remember to always save a little for in case.
⑥ First hand and second hand property
Usually, house buyers are approached through advertising and exhibition. They are the first hand buyers that are interested to buy a property at a lower price and to move in after completion. Second hand buyers are people who have the need to move in right away or people who only will be in that area for a certain amount of time.
👌 If you buy a new house from exhibition, do make sure that the developers are trustworthy.While if you buy a second home, do make sure that the previous homeowner have clear the utilities bills before transfer the house to you. And the house condition is important too, do hire a house inspector to check on the house status if you really interested to buy that house.
Many people are unaware about Mortgage Reducing Term Assurance (MRTA). MRTA helps protect the interests of homebuyers. The purpose of MRTA is to offset any of your outstanding loan in the event of Total and Permanent Disability or loss of life, which lessens the burden of your family.
👌 House insurance is very important, it can protect you from fire issues as well as nature disaster. Don’t save a little money by not purchase any house insurance, i’m sure you will definitely regret if there is any issues happen in your house. (Click here to read 3 Types of Property Insurance You Must Have)
Since safety is the priority of every house owner, having guards and fences give people a sense of safety.
👌 Do do the research of the security nearby the house. Is there any robbery matters in the past few years or months, is the door locks are functioning properly, is the guards have do their job seriously etc. This is the homework you need to do before buying a house.
⑨ Financing methods
For investors, they would rather pay 10% down payment and take a bank loan for the rest of the payment. Their aim is to spend least money possible and highest amount of profit by extending the payment duration. As compared to investors, buyers who intend to keep the house, they do not want to bear a huge amount of debt. Hence, they want to pay off the mortgage in the shortest possible time. These owner pay a higher amount of down payment and shorten the period for interest and province.
👌 Apart from the above said, you would need to check on which type of mortgage loan that suitable for your current financial status, you may seek advice from bank consultation. If you buy house for your own stay, I’m think that put down 10% down payment is a must, and this is very good if your savings is more than 10%. It can reduce you financial burden in the future.
⑩ Pay back consistently
Some buyers choose to ignore bank financing regulations, in order to have more cash each month. This is not a wise move because the amount of loan will slowly build up till a point where buyers cannot repay their debts anymore.
👌 This is very important to pay-off the mortgage loan on time, as its interest is quite high if you pay back late. Old word, do search for the house type and loan type that suit to your current financial status and consider of self affordability.
⑪ Choose the right mediator
You need a mediator that prioritises you, who is hard working, gets you the best property with the lowest price tag, sells your property in the shortest amount of time and helps you to secure a good renter.
👌 If you lucky enough, you can find this kind of people easily which can help you to do thing that best for you. And remember, always protect yourself by not give all your hear to the mediator.
⑫ Listen to the advice of professionals
A good agency will give you unbiased recommendations or opinions, so do listen to them. Yet, it is also your duty to confirm the authenticity of the information.
👌 You can seek advice from the professionals, but not totally apply their ideas on yourself as some may suit to you but some is not. Same word, you need to do your own homework too.
⑬ Bad neighbourhood
If the house you intend to buy seems fine, yet utterly cheap, you should consider checking out the neighbourhood. The house might be in bad condition, which requires you to spend a lot on renovation. Also, go to an agency or police station to understand the local security situation. There’s usually a reason for a property to be overly cheap.
👌 Bad neighbor can affect your future life. Before buying a house, you can interact with the “future neighbor” to check on whether they are friendly.
These are the 13 things that you need to aware before buying a house. Although there is so much things you’ll need to worry about, but after you get a house that you like, steady financial status and have a good neighbor, you will feel all the things you’ve been through is worth! Good Luck.