Being a first-time homeowner is quite intimidating, due to the fact that you often don’t know what you’re exactly looking for.
Even if you did own a house and now aim to relocate, well, knowing what you need empirically, doesn’t mean that you can compose a factual list of all the do’s and don’ts.
With that in mind, here’s a brief rundown of all the criteria that you need to at least consider when buying a new house.
1. The main objective
The first thing you need to do is answer one simple question – what do I need this home for? Do you aim to use it as a family home or do you intend to make it into a rental property in order to get an additional stream of income?
You don’t even have to decide right away seeing as how some people initially live in a home only to rent it out later, once they acquire an additional piece of property.
You could also get a home while the price is low, remodel it, wait for the real estate market to skyrocket and sell the place for a profit.
This also gives you a room for a lot of customization. Needless to say, seeing as how this will impact every decision you make in this process, it’s important to know the answer for sure, as early as possible.
2. Check your finances
The next issue that you should consider is your finances and the money you intend to spend on the place. Now, let’s be realistic, more often than not when buying a place, you’ll have to rely on a loan. This means that the first item on the list needs to be your credit report, followed by your credit score.
Here, factors like payment history and credit utilization play the biggest role and have the biggest impact on your ability to get an agreeable loan. Other than this, length of credit history, the type of credit that you’ve taken in the past and the properties of the new credit matter as well.
Other than this, you need to understand that there are some unforeseen scenarios that you should be prepared for.
For instance, imagine if you set your purchasing limit at the median $200,000. What if you saw a home of your dreams for about $220,000? Would you consider spending these extra $20,000 for a once-upon-a-lifetime opportunity or would you refuse to budge from your set limit by even an inch? Remember, there are other expenses and this real estate purchase can’t leave you penniless.
3. Professional assistance
You can’t do it all on your own. This is why you need some assistance, either in the form of a buyer’s agent or in a form of a real estate agency.
The availability of local specialists is particularly important, mostly due to the fact that it takes a lot of hours researching the market in order to know all its parks and quirks.
For instance, an agency like Priority Real Estate specializes in NSW, more specifically the Central Coast, property. No amount of independent research (even from a person who owns multiple properties) can substitute for this kind of experience.
Same goes for any region you intend to move to, in the future. In other words, prior to deciding on the neighborhood, always check the local talent, in advance. Speaking of which…
4. The neighborhood
The choice of the neighborhood is probably the single biggest choose that you’ll have to make when purchasing the place.
Local schools, daycares and playgrounds will play a massive role in the life of your kids. The safety of the place may determine how much you need to spend on security and much more. Most importantly, the neighborhood impacts the value of the property, which is crucial from the real estate standpoint
5. Features that you’ve always wanted
The real estate market is vast and rich with options. This is why when purchasing a home, you need to keep in mind one thing. Just because last 10 or 20 homes that you’ve looked at don’t have the features that you’ve always dreamed of having within your home, this doesn’t mean that you should give up on it.
Just because people on average look at 10 homes over 10 weeks before finding “the one” this doesn’t have to be the rule in your particular case. When making a major decision that’s going to affect you on a daily basis for years and decades, you can’t allow yourself to be guided by averages and statistics.
Needless to say, there are some additional, situational factors you need to take into consideration, factors like the age of the property, the size of the lot and the potential for future projects. The only reason why we didn’t include these to the list is due to the fact that different people have different stances on these topics. Either way, the above-listed five tips should be more than enough to set you on the right path.
Audrey Taylor was born in San Francisco, and moved to Adelaide at the age of five. Marketer researcher and social media manager on hold, full – time mommy of a cheerful two-year-old. Graduated from Queensford college, worked in a couple of marketing agencies across Australia, eager to learn more about business and share her experiences. Traveled across Europe. Her hobbies include: home decor, fashion, travel, music, old movies.