We often think next time. But not everything has second chance, and these things comes with its own challenges like buying a new home. First time!!! Means it’s your first experience. you are unaware or ignorant about it. We often dream of best decor, perfect layout, colorful rooms, etc. and often fail to understand some important aspects like paperwork, home ownership, home inspection before actual buying. Overlooking these aspects can lead to disaster to your forever dream.
To avoid getting off on the wrong foot of home-ownership, one needs to consider few fundamental facts.
- Mortgage loan Repayments- Not really a good Ideas!!!
While buying homes for first time, most home owners when they feel they can mortgage home loan. Well the reality is that the there’s more it like property tax, insurance, maintenance cost, other bills, etc. We often fail to understand such additional cost as first-time buyers. Remember this, even if you can afford it now, be prepared for other additional costs later.
- Think before Emptying all your Savings
This is especially for those home owners who are planning to buy previously owned homes. You then most likely to expect minor or major repair work soon. You may need to solve seepage problems, may be crack in wall, plumbing or electrical issues. The pain keeps sprouting in such cases for first-time home owners. You’re in a pickle if not saved enough or used all your savings before.
- Consult a Professional
First-time Home owners often find themselves lost with the technical terms of papers. Well we suggest you to do some homework by yourself and always have a professional i.e. a Lawyer before signing any document with builder. Check for the authenticates and reputation of the builder. Be careful before signing on those dotted line. Check twice before moving into any agreement or financial transaction. Ensure correct seller/builder due diligence.
- Never Underestimate Makeover/Renovation Cost
First-time home buyers are startled seeing high budget renovation and-repair cost. Its human nature we want to squeeze everything into small areas, small budgets. Well it doesn’t work the same way here. Infact we suggest you to multiply your estimated renovation/repair budget by 2. Avoid opting for cheap repairs and renovation material/work. Cheap labor, cheap material will intensify future repair costs.
- Avoid being too fussy, Be Practical
Being a first-time home buyer makes you often compromise due to limited funds. Be Accommodating. Set your priorities right. You may have to live in quietest of area with outdated decor, or even give up on extra room or furniture to have your biggest investment dream wish.
- Don’t be Impulsive in Buying
You may not like the grim paint shade or wall tile in kitchen or a gloomy wallpaper in bathroom. Think , can you afford to repair it right now or may be live with it and have is the home you always wanted to own. What I am trying to say here is, if the home meets your needs on all other ways say affordability, area, maintenance-wise, etc. don not let any minor imperfections divert you having bigger thing. Don’t be impulsive and not buy home for such minor issues.
- Think before you take the most important dive
Understand your present needs and future too. Are you planning to extend your family? How many? Don’ not buy 3 BHK when you know you would need 3 in future. You love but do you really need it. Think twice before you buy your first home. Do not make a compromise or indulge into over buying that could convert to major strain.
- Look Around the Building Premises
Think about future. Inquire, study the area. Well its difficult to predict or know for sure for your neighborhood. But being observant and aware of neighborhood can help you what will come up of happen in future.
Here are few pointers that could help you study about your probable home.
i. Know kind of development plans around the society you planning to buy house. Sometime you buy an apartment having beautiful view outside your balcony. But what if a huge tower come-up in few years. The view is blocked. You’re disappointed.
ii. Study for future road developments
iii. If any undeveloped land, inquire for forthcoming project on same.
iv. Know the neighborhood Home value. Are they Declining or Rising?
Do your Home-work,study well about your neighborhood to avoid any kind on unpleasant surprises.
- Changing Jobs
This for sure is beneficial for career, but it may cause difficulties for loan approval. The bank would always make sure that you have steady income, employment and presence to repay the loan.
- Love at First Sight
You sure can feel attached to a home the moment you step in. It may have all attributes you were looking for. Wait. You start imagining what would be arranged where, what room will have which color, etc. Wait! Pause there. Think, Is it going to be a good investment? Well it may not even if it seems to be a perfect home in your head. Also avoid displaying emotional attachment or love for homes. You can lose on negotiating power.
- Consider the Resale Value
Though its very hard to predict if the prices of a home will increase or decline, it is always clever to buy house that is easily sale-able. Not only that but retrieve dividend after making heavy investments. Makes your home appealing to buyers if your purpose of buying is reselling. Look for interesting features in home, society that would make it easily sell. Location is one major feature. Some home owners buy well designed homes in not so appealing neighborhood. Property market, home conditions, design etc, impact the resale value. Its always wise to talk to a realtor to understand property market rates and working.
Its always wise to buy a property that would easily sell, if not, you are making a big mistake.
- Inspect the Home thoroughly Before Buying
It takes a trained eye to be able to inspect glitches present in the home you buying. Sure, you need a know contractor or Interior Designer of professional from similar field. We often get carried away with emotional roller-coaster that we already going through while buying homes that we forget to understand the health of our house. Yes, you read that right, health of the house! By health I mean to know the in and out of the house. Knowing problems that exist that could occur and also those may not. Home inspection can save your time and money that you investing presently and in future too. Home inspection before buying helps you fix, any civil, plumbing, electrical, leakage, dampness, final finish, etc. set-backs. It could sometimes save you from making your biggest financial mistake.
Buying home for the first time sure is the biggest investment you will ever make. Buying home can be traumatic as well as groovy experience. But nothing comes without downsides. If you are well informed, studies and planned you can save yourself from unnecessary stress and most importantly costly mistakes.