Buying a home is possibly the biggest and most important investment a person will ever make. Here are some tips so that you can reach that amazing moment of accessing a home of your own, with your money, at the right time.
If you are in a position to save, even if it is only a small portion of your income, you will be in a position to begin to consider the possibility of having a home of your own. Everything will depend on the way we save and manage our money. Yes, it takes a lot of money to buy a house: not only for the value of it but for the extra expenses that come with the operation. You should always be aware of the budget and look at assistance in working out what finances you may need. If you are refinancing, you should look at mortgage refinancing.
Main costs when buying a house
The first formula to take into account says that the ideal value of the house to buy should be between 3-5 times the annual salary of the family, that is, 4 times your annual salary plus that of your partner. Generally speaking, these fees apply to most countries that you are buying in.
Administrative expenses: Agency and notary expenses.
Mainly the mortgage cancellation commission.
Fiscal expenses: The taxes to pay for the capital gain produced in the sale and the municipal tax. These expenses represent between 8% and 12% of the purchase price of the home.
The entrance fee
This is the most important and highest cost by far. Usually, it is 20% of the purchase price of the home.
Reserve money and take care of what matters.
Having at least 3 months of payments and housing expenses saved will give you a little more peace of mind after the purchase. It is a small emergency fund that will be very useful to you.
This allows you to be less tight in the first few months, which is always difficult to get used to paying a mortgage, and thus you will avoid using credit cards or other personal loans in times of trouble. You should consider looking at loans to assist you.
Building a solid foundation
Even before you start saving for your first home, there are a couple of important short-term goals that are important for you to know. Pay off all your debts and avoid new charges on your credit cards. Financial expenses are a virtual wall between yourself and your ability to face a large investment, such as buying a home. Starting the planning as early as possible and look at the following:
Determine the amount of money you need and on what date: 20% of the entry, at least, the purchase/sale expenses and 3 months of housing expenses to go more calmly once you have bought it (keep in mind that If you are already paying rent, you only need to save the difference between your rent and your estimated monthly mortgage payment).
Open a savings account or a time deposit for savings focused on buying your home. In this way, you will accelerate the achievement of the money necessary to be able to buy your house, that you do save money but you keep it in a simple checking account that does not bring you any profitability.
Calculate how much you need to save each month to reach your goal on the date you have set for yourself.
Automatically allocate this monthly savings amount to your savings account once you enter the money from your salary. This way you will automatically save to achieve your goal almost without realizing it.
Staying on track
At this point, it is important to make some decisions to know in which aspects of your daily life you are going to reduce your expenses and increase the savings rate and thus avoid possible future inconveniences. It is also important to include the whole family in this part of the process. It is always easier to make certain sacrifices when everyone is striving toward the same goal.
What to look for in a new home.
Depending on your needs, you will have to know what infrastructure the neighborhood has in terms of schools, - sports facilities, hospitals, shopping centers, supermarkets, or green spaces. The existence of nearby public transport is also very interesting if you commute to work. You should look at the following:
Analyze the distances and travel time to the workplace or other locations that we usually have to go to.
It is convenient to gather information on possible urban projects, their growth prospects, or any incident that is planned in this regard. This can affect the revaluation of the property or, conversely, devalue it.
To avoid future surprises, it is convenient to go around the neighborhood day and night, at peak times, to check if there is excess traffic, noise, if it is a quiet area or if there are establishments that may be annoying. Also, go back at night to see if the area changes.
The exterior and interior
Well-oriented houses offer you more natural light and better ventilation.
They are houses where you feel better, just because of the way the light is distributed throughout the day. In general, a factory is not a decisive vital advantage. Light is life, in addition to transmitting peace and serenity. If you add neutral colors that enhance the light, high ceilings, light woods, you will have a perfect base for your home. Terraces and balconies can be beautiful. Having a good terrace is essential and after confinement, apartments with balconies and houses with gardens will be the great beneficiaries of the market. And among the houses with light, houses with large windows, patios integrated into the living room; in short, everything that can increase the natural lighting of your house.
And in this modern world, it may be important that you buy a house with good insulation because you can save a lot of money over time in energy. You have probably heard your neighbors' water rushing through the downspouts in the bathrooms, or the couple next door arguing in the living room. Dogs barking, televisions blaring - thicker walls and houses with better insulation will block this sound out much better. To buy your future home, choose those that offer you the best exterior qualities, without forgetting the partitions between the rooms themselves.
Space offers peace!
Visually it should be wide, with open areas, or separated by glass partitions, but with well-defined environments. A house must be flexible, adapt to your needs and its distribution must be coherent. If things are messy and out of place, it would be impractical. Modern kitchens are open to the living room and have studied and versatile storage. The children should have their play space within sight of their parents where they are free to make a mess and be themselves.
Moving home is stressful and finding the perfect house can be even harder. We know that when you find yourself with the opportunity to have everything you need for your own home, emotion runs through you and many times the impulse, but do not get carried away by these feelings. Concentrate on your plans and try to fulfill them in the best way, so you will not have to suffer from surprises. You should look at all aspects and budget to ensure that it is truly the best decision you have made. A rushed decision may lead to difficulties later down the line.
CANDY TAI is a wife to David and mom of 5 with a degree in Communications. She's a native Texan (Hook 'Em Horns!) who's been making her home in the Kansas City metro area for nearly 15 years. She loves being able to shuffle her kids from their various sports activities, piano lessons, and school activities. She enjoys fashion, beauty, reality TV, and moviegoing.