When you first decide to buy a home, it is really easy to get caught up in fuzzy dreams of colour schemes, so here are four things to remember when you are preparing to buy.
Think long-term
Property is considered a long-term investment and a vehicle for building wealth over time, so it’s important to understand that increasing equity in your most valuable asset will take time. Before you agree to buy what you think is your dream home right now, it is worthwhile to consider your long-term plans. If you are unsure about how this home might suit your lifestyle in a few years, then perhaps it is a good idea to keep on looking.
One of the major factors to decide is where to live. Which is the best area to send your kids to school in? Will you be closer to work in your new home? How will this affect your commute? What amenities are you looking for nearby?
Research
Get smart with your research and talk to the people who live in your desired neighbourhood. Connect with groups on social media where you can find out more about the community and the people you have set your sights on. There is a wealth of information out there, but remember to compare apples with apples.
Credit score
Obtaining a home loan relies on you having a good credit score. In order to assess your risk profile, the bank will review your credit profile to see how responsibly you have handled money in the past.
Prior to applying for a home loan, you can work towards improving your credit score by paying credit promptly and by not incurring new debt. Improving your score can take at least six months, so prepare to play the long game.
Budget
The purchase price is only one aspect of buying a home, so be sure to factor in all the costs. Research what you’re liable for before buying to ensure you have sufficient capital to take care of additional costs.
If you are concerned that your spending will get in the way, try dividing your monthly budget up into weeks. Now take this to the next level and only deposit your weekly allowance into your day-to-day account every week.
Stick with it
There will be plenty of temptations – be strong and keep the goal of owning a home in mind. Create a list for yourself with all the reasons why you are buying a home and why budgeting for this goal is important. Writing things down is a very powerful visualisation tool to keep the focus on one’s goals.
Read Leadhome Properties’ comprehensive buying guides for a wealth of valuable information to help inform your property journey.
Leadhome Properties, SA’s No 1 low-fixed-fee estate agency knows that when it comes to high-value transactions such as real estate, buyers and need a reliable partner they can trust through transparency and certainty. Leadhome Properties is and will always be your trusted partner when buying or selling property.
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