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The Ultimate Checklist: Buying Your First Home

Written by Posted On Wednesday, 05 July 2017 15:44
Buying your first home Buying your first home

Going into adulthood (or even being adult for quite some time) it’s usual to assume that it is time to buy your first home, be it an apartment or a house.

Your first income on that post-grad job may seem like a big deal for a fresh ex-student. However, with time, you realize that it might not be enough for you to go into a home purchasing adventure.

For many purchasing your own home is an overwhelming feeling and very stressful process. It can be very tough to handle, no matter if you have guidance or you are at it alone from the start.

To help you kickstart your journey, here is a short but actionable list of things to follow to get all the necessary information you’ll need:

  1. 1. Give The Property A Test Ride

The apartment you’ve just viewed is plain beautiful - it’s bright and shiny, and you can almost feel the smell of the river in your soon-to-be living room.

This awesome feeling, however, does not mean you should grab your wallet right away.

You need to carefully analyze the property and make sure there are no loose ends. Bad drainage, hidden holes in the walls, or even moldy basements are just the tip of the iceberg of what you need to watch out for. Believe me, you’d rather invest your money in furnishing the apartment as you like, not repairing it.

2. Should You Consider A Fixer-Upper?

Nobody is going to look away from a bargain, no matter what we are buying. From the little things such as groceries, to major purchasing decisions such as a house, a bargain is something you’ll feel obliged to consider.

You may feel tempted to buy a cheap place and flipping it in a couple of years. That can be a very smart idea, but probably not for your first property, as you have a lot to learn before embarking onto such an entrepreneurial endeavour.

In case you have no one you can trust that can help you with the flipping (read: doing the hard work), make sure to avoid fixer-uppers so you don’t lose too much money in renovating.

Instead, you can look for a house or apartment that requires minor repairs and is priced below the market.

3. Don’t Forget The Margins

The major Wall-Street companies would go for distressed properties and aim for a 5-7% return, as their overhead costs quickly add up. Since you are buying as an individual, you can calculate your margin at 1%.

That said, make sure to estimate maintenance costs at 1% of your property’s value on an annual basis. If you are uncertain how to do this, it would be best to seek professional advice when doing the calculation.

When buying your first property you can go for online loans, to give you a boost in the budget. That way you won’t have to settle for a fixer-upper.

Your first property purchase should still, by all means, be a well-informed and thought through decision. Especially if this is your first experience in real estate movements, it’s better you don’t try and do it alone.

Make use of the vast amount of information available online, and you will get a good grasp of this complicated subject very fast!

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Hellen McAdams

More in this category: > New Horizons: 5 Tips for Finding a Home in an Unfamiliar Town Be careful not to over improve your home
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