Becoming a homeowner is one of the biggest milestones in everyone’s life. Moreover, buying a home is probably one of the biggest purchases you’ll ever make. Although buying a home is such a happy moment, it’s also one of the most complex steps that you will ever take.
Sincerely speaking, you’ll need time, money and knowledge to maximize the chances of having a great investment. With that in mind, here are five things you need to know before you start your property search.
Do Your Research
There is no such thing as being too informed. Take your time to research everything. Research the local area, trends in local area, property prices, real estate agents and of course mortgage rates. Yes, research even local banks.
Make sure that you utilize your research scraping online portals, such as Bayut property portal for adequate and trusted insights on property. This is a great way to get much-needed information on area and price even a year before you buy a place.
Surround Yourself With Professionals
Working with professionals will bring you security and save your time, although it will cost you more as well. But, if you want to finish work fast and safe experts are your best option.
Licensed professionals will help you pinpoint any issue that could potentially pop up, from birocracy, home repair, and any other hidden cost. Also, think about working closely with a mortgage broker.
Keep Cool Head
Best decisions in business are made with the head, not the heart. That being said, make sure that you protect yourself and feel free to walk off if you don’t like the deal - there is always something waiting for you. Research, deal with numbers and ask a lot of questions.
After all, you are buying your new home and should know about it as much as possible. Always use your head.
Think What You Can Afford
Always be realistic and double-think on what types of property you can afford. By this, we are talking about the maximum you’re prepared to pay each month. The chances are that you will probably have to take a mortgage so planning in advance is crucial.
Make sure that you plan your budget with home loan repayments in mind, and live on a new budget for three months. By doing so you will be ready to continue living once the mortgage kicks in. Moreover, mortgage won’t own you and you will be the one in control.
Your credit score will play a major role in getting your property, as the credit score will determine what interest rate you’ll obtain. Make sure that your credit score is where you want it to before you even apply for a mortgage. If it’s not, then you should start thinking about different ways to raise your credit score. Also, you should be informed of non guarantor loan options.
Pro tip: Talk to real estate agents and your mortgage broker to understand what’s happening in the local area.
An investment strategy is important especially if you are thinking upfront. Proper steps can help you save more money or even earn money, especially if you’re not planning on living in your home for decades. Think about positive cash flow property and treat your property as a way of earning even more money.
Therefore, do renovations to increase value, subdivide a property, do larger developments, buy units and do a buy and hold. Just set the goal for your property and work out on what suits you the most.
Always make sure that you’re buying a property as a logical, considered, and well-researched decision and not an emotional one. Always take a step back and don’t rush.