Important Aspects To Consider When Buying New Property
Owning a home is dream which many people unfortunately never fulfill. On the other hand, owning property isn’t a thing for everyone. Despite the fact that many people would tell you that buying property is a safe and fail-proof investment, there are many facts to consider here – home values do not always go up and the monthly payment isn’t the only thing to keep in mind, payment-wise. Buying a new property is quite often a very tricky thing but it can also turn out to be a rewarding experience. This short guide will help you get into the groove.
Consider Before You Get into It
As I’ve already mentioned, buying new property isn’t really for everyone. Chances are that you’ll come across someone who will preach to you that buying a house is a good investment and, more than likely, at least some of your friends have bought a new house. However, here are a couple of things to consider beforehand:
- Down payment – Before it gets to financing, make sure you are aware of the fact that you’ll have to come up with approximately 20% of the purchases in cash.
- Time – Buying new property is a commitment, so if you are likely to switch jobs within the next couple of years, this might not be such a good idea.
- Beyond mortgage – Maintenance, upkeep, repairs and property taxes are some of things to think about, payment-wise, but there are many more additional costs – not something a renter has to think about
Determine Your Budget
If you have decided to get into buying new property, here’s the first thing to think about: your budget. Not unlike making any other financial decision, this is something to think about before committing.
A general rule of thumb is to be looking at home prices, worth two or three times more than your yearly income. This can be very useful mortgage-wise. Mortgage payments should not exceed 28% of your monthly income.
Another thing to consider budget-wise is the less important but not unimportant stuff, such as decorations, moving and maintenance costs and home improvements in general. You should prepare an emergency fund to be able to deal with these situations easily.
Start House-Hunting
This is where it gets interesting and this is where you’ll finally get the feel of actually browsing homes! As it’s the case with most things nowadays, you can browse online resources, with regards to this.
No matter how helpful the online world is, hiring a buyers’ agent is more than useful – someone experienced can help you save both time and money. Take your time with regards to this step – finding someone who fits your needs perfectly is extremely important.
Additionally, there are many systems and methods for helping you buy property available online, so you’re in luck – we live in promising times, property-buying wise.
Insurance
Regardless of the property you’re interested in, you’re going to need proper insurance to cover fire, theft and storm damage. Additionally, think about things such as furniture, expensive jewelry, home office equipment and electronics. This is especially important if you live in an area prone to floods, storms and the like.
Luckily, this is also something that the Internet can help you with – shop around online and you’re going to be more than likely to find an insurance agency or an independent agent to help you.
Buying new property can be quite an endeavor, so covering all the outlined basics is extremely important. Seeing as how this isn’t really a small thing, you should definitely do a proper amount of research. This shouldn’t be a very difficult task, but it will take some time. Nowadays almost any kind of information can be found on the Internet, so let that be a good starting point for you. When you gather sufficient knowledge about all the important aspects, you’ll know when you’re ready to start on a serious hunt.