Are you on the cusp of stepping onto the property ladder for the very first time? If you want to overcome this huge life milestone in a productive, profitable, and stress-free fashion, be sure to heed the following advice and guidance.
Here are three top tips for first-time home buyers that you should consider:
Set yourself a budget
As tempting as it may be to envision yourself living in a Malibu beach house, you need to rein in your aspirations in this sense if you are serious about fortifying your financial foundations. If you want to enjoy a safe and secure start to your life as a homeowner, it’s vitally important that you set yourself a budget BEFORE you enter the housing market.
With a fiscal total in mind at all times, you will be less likely to spend your money on a property you neither need nor can realistically afford. Ultimately, this will aid you in your bid to stay on top of your mortgage demands, tax costs, and general property expenses going forward.
Here are three things you must do if you want to set up a safe, secure, and sensible home-buying budget:
- Embrace the 28% rule — your mortgage should not exceed 28% of your gross monthly income
- Take a plethora of recurring expenses into consideration (maintenance, seasonal repairs, property taxes, etc.)
- Only view properties that you know you will be able to handle with regard to size, location, and condition.
Invest at the right time
There is never necessarily going to be a wrong time for you to purchase your first house — the sooner you make this investment, the sooner you will be able to embark on the next stage of your life. There are, however, definitely times in the year that are better suited to the buyer’s market. If you are serious about maximising your property relocation’s profitability, you should exercise a bit of patience and wait for these periods to roll around.
Believe it or not (considering the devastation that the global pandemic caused on the financial industry), now is very much a good time for you to take your first step onto the property ladder. The current UK Government Stamp Duty holiday alleviates a lot of the financial pressures that first-time buyers normally face, which is why you should seriously consider getting your skates on! Should you act quickly in your bid to become a homeowner, you could end up avoiding all manner of taxation costs. Ultimately, this will help you to save you a boatload of cash in your home-buying endeavour, which in turn will allow you to spend more on decorating your new abode.
March through July is widely considered the best home-purchasing season for first-time buyers during normal economic periods. This is when you will have the largest selection of new market listings, which in turn will provide you with more choice when it comes to where, when, and how you spend your money.
This might be easier said than done, especially when you are so excited, and there is so much money involved, but you must strive to remain calm during the duration of your home-buying process. Successfully performing this all-important task will help you to exercise patience with regard to your property purchase. In turn, this will increase the likelihood of you coming to a sensible investment decision before you sign any official documentation.
Before you take your first step onto the property ladder, you will be liable to suffer from a degree of home buyer anxiety. To handle this plight in a highly effective, efficient, and stress-free manner, you must:
- Find yourself a real estate agent that you can connect with on a personal level.
- Don’t seek reassurance from other people, especially when it comes to interest rates, as that will only cloud your judgement and impede your decision-making process.
- Always remember that you are never going to find a perfect house — there will always be minor property issues for you to contend with
- Plan ahead and create a moving schedule/itinerary for yourself.
- Most important of all… remember that buyer’s remorse is inevitable, and it will pass.
You are on the verge of making one of the biggest purchases of your life. If you want your maiden voyage into the world of property to follow a smooth trajectory, it is imperative that you consider putting the advice laid out above into practice.