For most people, buying a home ownership is one of the great life goals. For those who buy the first house, nothing is more exciting than finally having the turnkey and feeling like you own something you've struggled to achieve.
But before that there is all that excitement while you're looking and you see some houses, whether on the internet or on site.
At this stage, you begin to wonder how you will decorate and tidy things up in the new house. You're already seeing yourself spending weekend nights on the balcony overlooking the sea or planning how you're going to decorate the kids' room... This is undoubtedly the best phase!
Emotions thus come into play in the buying process and all these happy thoughts of the future lead him to tell the agency to remove the sign saying "For sale" and that he wants to move in the following month. But don't be hasto!
Below, we present 10 tips that you should take into account when buying home for the first time:
1. The timing to buy house is everything
House prices rise and fall and are influenced by a number of factors, including supply and demand, as well as the overall economic context. Of course, it is much more profitable to buy when prices are down. If you find a property whose price is currently high, but predicts that it will fall in a year or two due to new government policies, for example, then you must freeze the purchase and solidify the finances so that you can enter with a bigger signal in the future.
2. Long-term plans for the house
Most likely, the house you buy is for living (not for vacation or rent, for example), but did you think long-term? If you plan to sell in the future, the location of the house will have a big impact on its valuation, so you should think twice about the location of the property when you decide to buy.
3. Size matters
Although a giant mansion is your dream home, the size carries more costs. If faced with a choice between houses with similar prices, in which one of them has a few more square meters, it is tempting to choose the largest and, in most cases, it is a smart move. However, a large property has more maintenance costs and may have higher monthly expenses.
4. Looking for a house to rent
If you plan to buy a house in order to rent it, do a mini market study on the demand for homes to rent. Even when demand is high, don't rush and try to pay housing credit already with income money.
5. Housing support programmes
There are several programs by the state to help citizens buy their own home. Search and see if it's eligible for any.
6. Compare funding to buy house
The bank chosen by most people who will buy a house is the one with which they have been in a relationship for some time. But with so many banks providing housing credit, you can save a lot of money on paying interest just by comparing the various offers.
7. Be very careful with inflation
Don't think it's escaping inflation. It would be best to do a study to know the trend of inflation so as to understand whether a long-term home loan (say 30 years, for example) is more advantageous than a short-term one with which it would save on interest rates. If inflation is high, the amount of the loan you will pay in the following years may even be lower than it may appear in the current valuation.
8. Build an emergency fund
Having an emergency fund takes on added importance when buying a house, as you will need to find a way to pay monthly instalments if you suddenly lose your primary income source. Work to get some money together for the emergency fund, which ideally should be enough to cover some monthly benefits and household expenses while looking for work.
9. Get an agency
You can do all the work yourself and buy a house on your own, but having the help of an agency can relieve a lot of the stress associated with the process. An agent who works for you can guide you and advise you on ways to save money on the property you are interested in. Find someone with experience and who you can trust. Ask for references to friends and colleagues.
10. Budget for additional costs
As you would expect, you may be too focused on the price of the property and forget about the other costs related to buying the house, such as tax and fees.