Ten Things to Consider before Buying New Property
Anyone can tell you that buying a house is quite a big deal. First off, it’s a huge amount of investment. Second, it’s something you’ve worked for your entire life. The day you start earning something is probably the day you start planning what your dream home will look like.
For some, this planning begins even before that, at a very young age when during pretend-play we build castles in the cloud. Even if the property you are seeking to invest in isn’t your home, rather for investment purposes, it still is of course pretty important. You’d want returns from it and you’d be looking for value for money!
This is why a home specialist Melbourne is so significant! They can guide you and help you find just what you’re looking for.
Ten Things You Need to Keep in Mind!
Since buying new property is, of course, a significant amount of investment, this decision demands due care. There are many things that must be carefully considered before deciding on buying a property.
Here are ten points that absolutely must be scrutinized in depth:
Use a Trusted Realtor
Buying a house involves many decisions. Ideally, to make such decisions someone informed should be there by your side lending you good advice based on sound knowledge and experience. This would, of course, be a home specialist Melbourne.
Always make sure that the realtor or the home specialist you’re trusting is worth his/her mettle. Even more important is that they will be serving your interests well.
Be Mindful of the Contracts Involved
When buying any new property, there’s lots of paperwork that needs to be addressed. Many papers need to be signed, and a huge proportion of these are actually contracts.
While these contracts often look standardized things that just have to be signed and done away with, that’s simply not true. A lot of things can be negotiated. Hence, review and inspect every paper carefully before signing anything.
Keep in mind your Long Term Plans
There are many questions that need to be answered before committing to a new property. Where do you spot yourself in 10 years? If you’re buying a home, do you plan to get married? If you do plan to get married, how many kids would you want to have? Will you be staying at your current job for the foreseeable future?
Since buying property is one of the bigger financial commitments of anyone’s lifetime, all related aspects need to be addressed.
Consider the Commitment
I don’t mean to sound like a pessimist, but there’s so much at stake when you buy a property, especially when it’s with someone else as well.
For instance, if you’re married, there’s always a chance of divorce, and then there are laws governing the distribution of all assets. If you’re not married but are investing in a new property with your spouse, you need to understand things may go south and plan according to that as well. Best to get everything in writing!
Any renovations or changes you might want to make after investing in a new property needs particular attention. Don’t blindly assume the costs that will be involved, call in people, take estimates and only commit if you think you’ll be able to bear costs of all involved things.
These include materials, labor costs, consultants’ fees, and many others.
Keep your Budget in mind
It is comparatively cheaper to fix minor cosmetic issues in a new property. However, like any home specialist, Melbourne will tell you, it’s the major things that cause a financial burden.
This is not just cabinets, counters and appliances. Did you know that the cost of labor involved can almost triple your cost? No, right? Well, that’s the way it is. Always keep your budget in mind and plan everything according to that.
All the costs involved
The simple rule here is to buy the property you know you can afford. This decision should be made keeping several factors in minds such as your projected income, insurance, taxes and of course the dynamics of the market and the economy.
Maintenance costs should be considered as well. After all, it costs money!
Lending laws are what needs to be understood here. There are many types of loans. For instance, a person a few years out of college might have student loans.
Prepare all your documents in an organized manner, so you know all loan related issues that need to be discussed.
Home Mortgage Deductions
Since home mortgage deductions are such a huge attraction, many buyers end up buying more than they can manage just for the sake of deductions. This is a huge mistake as other factors need to be attended to, as well.
Are you really ready?
Ask yourself if you’re really ready for such a serious commitment. Buying new property simply because you “should” have bought property, or because it’s the norm in your circle is simply not reason enough.