Friday, 31 July 2015

How Ready Are You for Your First Home

If you are toying with the idea of investing your money for some time now, then you must have
considered buying a property or house. Owing a house is often of those aims that we all have from the time we start earning money and more so, because it is one of those investment areas that promises a good and valuable return on investment. 

When you plan to invest in properties, there are few things that you should consider seriously to evaluate if you are ready to buy your first property:

  • It is extremely important to understand that owing a house is different from renting a house. It is expensive and requires a proper financial plan to be kept in place. The cost does not only include the price of the house but the other factors such as maintenance, water and other utility costs that needs to be taken care of as well. A good financial plan should be in place that includes your regular expenses, debts and emergency requirements properly.
  • Buying a house will inevitably involve taking up a housing loan. Since most of the investments and big purchases today are done through bank loans, you should meet up the bank officers from different banks and understand their loan process. Though there might be very less differences, however, it is always better when you are evaluating the pros and cons of each bank. Loans can also be taken from the various mortgage brokers as well. Consider each and every aspect properly and if needed, consult a real estate agent and financial expert to plan your investment.
  • Be as much realistic as you can be when it comes to investing in properties. Buying a property may help you achieve your aim but it should also be in your affordability limits. The expense chart should consider your loan repayment amount, taxes, insurance and other items properly. If it is poorly made plan, then it may be difficult to manage your daily expenses and save for your future.
  • Once your expenses and finances are in place, your next step should be to find properties and real estate agents who can help you find the type of house you are looking forward to buy. It may strike you in the middle of the hunt that the ones that you are getting are not matching your dream house. Discuss with your agent about the facilities and amenities you need and your budget as well. This will help in finding the proper house for yourself.
  • Be prepared for all the closing costs after you are done purchasing your house. It might be required 15 to 20 years later but take preparations for that as well.

While investing in properties, managing finances plays a significant role and it must be taken into consideration properly, even if you are not a first time buyer. 

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