Tuesday, 12 July 2011

Top 6 Points When Buying Your New Home

By Garry Reyes


1. Rent For Short-Term, Buy For Long-Term

Some families make the mistake of buying a house when they're not yet sure if they intend to stay in the house for the long term. This mistake can cause a loss of investment if you're not careful, especially if the value of the property changes due to the economy or the surrounding area. Better ask yourself, is this the house where I want my children to grow old in? Is this where I'd like to have my grandchildren? If no, then you might want to consider renting first as the safer option, until you find the house that you really want to own for your family.

2. Make Sure You Stick Within your Budget

Buy only a house below your means. I know that there's a temptation to go all out for buying your "dream house", but please be very careful. It's better to buy a smaller house which you know you can securely own without any hitches, than stay in your dream house only to lose it several years or months after purchase. Be clear about the amount of money that you have to pay the mortgage each month. But also make sure that you still have money for general savings. What you want is enough savings to prepare for any unexpected crisis like losing your job, while still able to pay the mortgage.

3. Make Sure The House Is Inspected By An Expert

The house might look beautiful on the surface, but there might be problems hiding behind the walls and in the foundations. A good inspector will be able to detect any problems that could cause serious problems later on. Don't try to inspect the house yourself but seek expert help. Structural problems will both affect the reselling price of the house, and worse, it could cause safety hazards for your own family. The principle here is that it's better to be safe than sorry, especially for such a long-term investment as this one.

4. Consult With A Real Estate Agent

Try to look for a real estate agent who has good experience and who you can trust, someone who will give you quality advice. Not all real estate agents specialize in the same kind of property, or the same kind of locations. So try to look for a real estate agent who has had good experience in your chosen neighborhood.

5. Always Consider The Neighborhood

You might love the house and lot, but what about the surrounding environment? The surrounding neighborhood in the long run is just as important as the house itself. For one thing, if the neighboring homes cost much lower than yours then be wary, because this will have an impact on your home's selling price if ever you decide to sell it later on. A good school in the neighborhood can potentially increase the resale value later on, and also benefit your children and your transport costs.

6. Always In Writing

Given the weight of this investment, make sure that you don't rely on just verbal promises but that everything is put on paper. Hire a good lawyer with experience in real estate purchases. Let him explain to you the numbers and details in the contract. He will also be able to give you further advice about insurance and other legal matters. Preferably get a lawyer who is part of a reputable firm with specialists in this area.

Buying a home is a little like getting married, you want to make sure that it's the right one for you! That's why the best advice is to take it slow and to take your time, but of course, don't take too long or you might miss the opportunity altogether. I hope that these tips help push you in the right direction. There are also other valuable tips out there, but these six are some of the most important to consider.




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