Few things are as exciting as purchasing your first home. Regardless of the property type, if this is your first time doing so; you need to ensure that you have proper knowledge and skill set to make the right decisions because buying a house or any other property isn’t something you can easily undo.
Indeed, buying a property involves much more than the everyday transaction. It involves significant financial decisions as well as important legal aspects. The following is a kick starter guide to buying a new home.
Know how much you can borrow
Preferably, you should save the highest possible deposit before you even decide to buy property to effectively minimise the amount necessary to borrow. This also reduces the amount of interest that you eventually need to pay, and means you can avoid extra charges like insurance. Check out the home loan interest rates that work best for you – whether fixed or variable. Know the additional costs such as stamp duty, bank fees, and legal fees and consider speaking to a mortgage broker or a professional.
Find the right property
It’s crucial to consider the future value of a home when buying it and there are a couple of factors that affect its price potential. The location stands out as the key to future capital growth.
Other elements to consider are the neighbourhood, schools, shops, amenities, medical services, as well as reliable public transport among others.
Inspect your chosen property
Your agent can provide you with a brochure or some form of marketing material of the property or you can check it online as well. This is a fantastic way for you to consider the property and to take any notes while inspecting the property.
Moreover, visiting the property makes it easier for you to compare properties through details such as the date the property was inspected, the address, the listed price or price range, and any vital features of the property that caught your interest.
Conveyancing is simply the transfer of a property’s title from the seller to the buyer. It is crucial that you research a professional for conveyancing when working on a contract of sale.
Use a qualified solicitor for any property matter, including conveyancing. This saves you time on paperwork such as title searches and stamp duty while providing you with peace of mind when making one of the largest single financial transaction of your life.
Conveyancing will incur costs such as searches of the titles office, certificate of rates, zoning, transfer duty, registration fees, and standard professional services costs.
After the contract becomes unconditional it is time to start packing! It’s vital for a buyer to keep in touch with their solicitor with regards to any issues that may arise. You can also arrange a pre-settlement inspection with the agent to make sure that everything is per the contract conditions.
There you have it! These are some of the tips that you, as a first home buyer needs to be aware of. Best of luck with house hunting!
Potentash Founder. A creative writer. The Managing Editor at Potentash. Passionate about telling African stories and stories about the inclusion of minorities. Find me at email@example.com.
“We're all stories, in the end.” ― Steven Moffat