Buying your first property is a very scary and exciting time for anybody. No matter how ready you feel to go it alone and purchase a property of your own, you’re always going to have some doubts and feel a little apprehensive. Of course, by making sure you do plenty of research beforehand, you can make sure you purchase the right first property for you and avoid making any silly mistakes.
Here are 6 crucial considerations you should make before you buy your first property to help you:
- What Can You Realistically Afford?
Money is everything when you’re buying your first property. You need to make sure that it’s somewhere you can realistically afford. You might find that you have your sights set a little too high and have to rethink once you’ve done the math. A 20 percent down payment is really important, as this will help you to lower the payments that you make back substantially. Also, going for a 15 year mortgage rather than a 30 year mortgage is nearly always better. Just remember to never go above 40% of your take home pay, as you will end up in a mess and find yourself struggling.
2. Is There Anything That Affects The Kind of Property You Can Buy?
Make sure there’s nothing out there that is going to affect the kind of property you plan on buying, as legislation and other things can change. New mortgage rules, for instance, have affected the way that many people buy houses. You can learn more here if you’re unsure of what could affect you like this.
3. Do You Want To Live In This Area For The Foreseeable Future?
Have you checked out the area properly, so you know that you’re making the right decision? You should ensure that this is an area you’re going to want to live in for the foreseeable future, so check it out at different times of day to make sure that it’s right for you. Visit in the morning, afternoon, and at night a few times. This way, you can make sure there’s nothing you need to be aware of before you move in, like your neighbors throwing crazy parties and keeping you up all night!
4. Do You Have Money Put Aside For Emergency?
You can’t live paycheck to paycheck when buying your first property. You need to make sure that you’re putting money aside for an emergency, too. Having a cash cushion will protect you should anything go wrong.
5. Do You Have Any Plans That Could Affect Your New Home?
If you plan on having kids in a few years, will you have enough room for them to grow in your home? Do you plan on getting a pet, and is it suitable for them?
6. Have You Met Your Neighbors?
Meeting neighbors in advance will give you an idea of who you’re going to be living next to - they may even be able to give you some important information about the neighborhood.
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