Undoubtedly buying your first property will be the first significant investment you are making in your life and possibly one of the most important. The illusion of buying their first property makes people think more about the superficial aspects such as the finish of the interiors or the furniture that their home will have than on the property conditions in general.
That said, it is essential to consider more important factors when buying your first property.
Be realistic on how much you can afford
It is essential to verify how much money you have in your savings account and your annual income. Knowing how much you have saved in the bank will allow you to know how much you can afford as a down payment. The amount you have available to pay for the procedures and services such as the real estate agent’s fees.
Knowing how much your annual income allows you to pay will give you a clear picture of what you can spend without turning your finances upside down. Specialists recommend that you should not pay more than 30% of your net income for the mortgage or the real estate loan payment.
Do you enjoy solitude or prefer company?
When you live in a condo or an apartment complex with other neighbors, you may have to care about fewer things. There would be someone else is in charge of maintenance and making sure everything is in order. However, you must pay an additional cost on top of your fixed expenses, and you will have to consider other people’s opinions on how shared areas should be used.
On the other hand, living without condominium owners gives you more independence. You decide how and when to improve and maintain your property, regardless of how you choose to do so. However, it would help if you kept in mind that all expenses will be your responsibility, and you will have much less free time. Remember that taking care of an apartment or a house requires time.
Find a good advisor
This involves a real estate agent and a financial advisor. The realtor will help you find the property that best suits your needs and your budget. No one should pressure you to purchase if you are not entirely sure. You have every right to ask as many questions as you need.
A financial advisor will be of great support when approaching the mortgage and credit institutions, whether public or private, to finance your future home.
New or old
Both new and old properties have their advantages and disadvantages; it all depends on what you are looking for and how much information you have. Generally, new houses and apartments are in good condition, but we recommend getting to know other developers’ projects. You should also take the time to meet the residents of those places and ask about the developers’ after-sales service.
On the other hand, second-hand properties imply other requirements. One of them is to verify the conditions of the property and, if these are not optimal, you can take advantage of them to negotiate the final price. Also, check that the payment of taxes and services is up to date and the property’s legal status.
A little bit of everything
Yes, there is still more! The purchase of your first property is something that deserves your full attention. A will is something you should consider even if you haven’t finished paying for your property. In it, you will determine who will inherit the property and how it will be the disposition of your properties and investments, stocks, and so on.
We also recommend you to ensure your new home. Don’t rule out life or disability insurance if, for some reason, the person(s) paying the mortgage should have a setback. But above all, give yourself some time to enjoy the purchase of your first property.