Everyone wants to have a house they can call their own. To have a sense of security and freedom. And rather then paying rent money which buys you nothing permanent, you can buy a house and pay it as installments. But buyers, especially first time buyers, need to know a few things before they go out looking for their future house.
Following are some common mistakes people do when buying their first house, and which you should avoid.
1. Ignoring to do research and proper planning
I know people get excited when they decide to buy a house, but that should not mean you skip the research and planning. Two of the most important steps to do before buying a house.
Doing proper research and planning helps you make wiser decisions and avoid missing important details.
Plan everything. Keep a notebook to keep track of things. Know you finances. If you are applying for a house loan, find out the actual amount the bank is going to provide.
Set a budget and know how much flexible from you budget you can be before you overdo it. Write that number down, and in no circumstance exceed it.
When researching about a potential house, there are some things you must find out. What is the property value in current market? Is there something wrong with the house? How is the neighbourhood? Are people friendly? How close are the school, hospital, and public transport. You must find out all these things and more.
2. Buying a house when you may have to move soon
Buying a house can be a tedious process. There are lots of formalities and things to take care of. Besides you might not be able to find a renter or buyer when you move. If you may have to relocate soon, it’s probably wise to just rent a house.
3. Going over your budget
It’s easy to lose track of the total costs when buying a new house. You find a house that you think is perfect for you but it’s over your budget. This can be avoided if you plan and decide on a final budget and stick to it. But if you can still manage to buy the place and maintain your financial stability, it’s up to you to decide.
4. Forgetting the additional expenses
Often when people try to decide on how much they can afford to buy a house they consider only loan installments and leave out the other expenses. A first time buyer may be aware of costs like house tax, home maintenance, and bills. Do some research and find out about all the additional costs, and then consider it in your budget.
5. Buying everything new
Moving to a new house doesn’t mean you can’t use your old furniture and other things. Don’t go out shopping and replace everything with new stuff. Of course, if you want to replace some of the things with new ones, go ahead, but keep in mind your budget and expenses. If after moving in you can still afford new things, you can buy them.
6. Be too picky
If you have a limited budget, be willing to make some minor compromises. Know what you can live without. Prioritize things. Know whether you can manage with a smaller kitchen or without a better view. While you can definitely wait longer till you find you ideal house for a price you can afford, and you might find it, know when it’s wise to settle.
7. Compromise on important things
While you should be willing to do it with minor things, don’t compromise with important ones. If you have children and need a triple bedroom house, don’t settle for double. If you have trouble climbing stair don’t buy a flat on top floors and there’s no lift. It would be wiser to just wait and find a different house than compromise on things you shouldn’t.