Six Things a Buyer Should Consider When Buying Property
The steps to buying a house for the first time buyers might seem complicated—particularly if you’re trying to purchase a home with no prior experience. Between down payments, credit scores, mortgage rates (both fixed-rate and adjustable-rate), property taxes, interest rates, and closing the deal, it’s easy to feel overwhelmed. There’s so much at stake with a first home!
Still, if you familiarize yourself with how to buy a house beforehand, it can help you navigate the real estate market with ease. Let’s get started with what to know about buying a house for the first time!
First Time Home Buyer Guide
Budget
One of the most important factors to consider when purchasing a property is your budget. It is crucial to determine how much you can afford to spend on a property before you begin your search. You do not want to live in your dream house and live in debt.?
The value of the property you are looking to buy may be affected by the surrounding area market’s average price or by the type of property you are looking for. Your budget should also take into account any potential repairs or remodeling costs you may incur. You should also factor in the costs of owning a property, such as taxes, insurance, service charge and homeowner’s association fees. Taking all of these costs into consideration will help you make an informed decision on the best property you can afford
Location
Location matters when buying your property because it can directly affect the value. Having a great location can make things easier when it’s time to dispose of the property. Beyond that, it’s important to choose a good location when buying a home so that you love where you live or invest.
When it comes to a property’s value and future appreciation, every real estate investor will tell you location is everything. If the property is in a desirable neighborhood, in an area where people are relocating, you may anticipate the home's value to increase over time. As the demand for a place grows, so will the value of that location.
Property type
The type of property you purchase is also essential. Are you looking for a single-family apartment or a condominium? Are you looking for a new construction or an old property? It is essential you understand the differences between the types of properties before you make your decision.
While single-family homes are typically in higher demand and have more resale value, condos generally have lower down payments, costs, and maintenance responsibilities. New construction properties may require an even larger down payment and have more restrictions, but you know exactly what you get.
Old properties can be an attractive option because you can make them your own at a lower cost, but they come with the risk of additional costs or unexpected problems.?
No matter what type of property you are considering, it is important to do your research and make sure it is the right match for your needs. Look into what kind of resale value the type of property you are looking at has and make sure there is an adequate supply of that type of property in the area. Research the recent sales in the area to get a better understanding of the pricing for the type of property you are looking for.
Size
Size of the property is another important factor to consider when purchasing a property. Larger properties are usually more expensive than smaller ones, but larger properties typically have more bedrooms and bathrooms, as well as more living space and storage space. Additionally, larger properties can have features such as a swimming pool, patio, extra rooms for entertaining, large kitchen and living areas, etc. which may make them more desirable.
It is important to consider the needs of your family or roommates when selecting size, as well as any potential resale value. If you are planning on renting out the property in the future, larger properties can usually attract more renters. Larger properties may also be an issue if there is limited parking or if a homeowner’s association enforces strict rules on size or other restrictions such as a maximum number of occupants. Ultimately, it is up to the individual buyer to decide how much size they need and what they can afford.
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Amenities
It is also important to consider the amenities, such as the features and amenities, the property has to offer. An important amenity for many homeowners is the safety of the property. It is important to research the crime rate of the area before considering a property.
Other amenities to consider include access to public transportation, schools, parks, entertainment, and shopping. For those who enjoy the outdoors, amenities such as access to trails, lakes, and other recreational opportunities should be taken into consideration.
By considering all of the amenities a property has to offer, you can ensure you make the most informed decision when purchasing a property.
Payment plans
Buying a property is a big step, involving a substantial long-term financial commitment from the side of the buyer. Therefore, a buyer should perform detailed research on the available payment plans before purchasing a property.
Here are some plans that can help in the prudent decision-making:
This payment plan is meant for those buyers who have ready availability of funds because they are required to pay a certain percentage of the total property value before the possession.
This payment plan is meant for those buyers who can pay a percentage of the total property’s price at the time of booking and the rest with the progress of the construction. The buyer has to pay the installments only after completion of the aforesaid stage of construction.
This plan is a combination of Down Payment plan and Construction Linked payment plan and is beneficial for those buyers who can ideally pay 1/3rd of the total amount at the time of booking and the installments terms.
This payment plan is meant for those buyers who can pay 20-25% of the total property value at the time of booking and the rest at the time of possession. It is a secured plan because it provides the buyers with both time as well as the security.
This plan is the 10:80:10 plan. Under this, the buyer has to pay 10% on booking and the final 10% on possession. The rest 80% will be financed by the bank loan, the interest for which will be paid by the builder till possession. But, it is a time bound plan.
Thus, a buyer must pick the payment plan wisely after thoroughly understanding the features of each plan and comparing them on the basis of fund availability, possession criteria and penalties involved.
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