How to Purchase a House within Your Budget
Buying a house is one of the biggest purchases of your life. It is challenging, but with the right know-how, you can have the home you’ve always wanted. And while it doesn’t come cheap, buying a property is a great investment that needs to be carefully planned for. Here are some tips to help you purchase a house that is within your budget.
Set a Realistic Budget
If you’re thinking of getting a home, begin by determining your current financial position. This will help you figure out how much money you can afford to spend on a house. Remember that owning a home involves more than just paying a monthly mortgage. There are other expenses such as utilities, taxes and insurance. So it’s best to stick to your budget to avoid financial issues down the track.
Research Property Prices
Get an idea of how much houses are worth in your desired suburbs. Have a look at the property section of local newspapers or check out the web to find properties for sale. Real estate websites like Homesales provide resources and tools that are helpful to homebuyers. They enable you to search for potential properties from the comfort of your couch and also allow you to get familiar with the market well before you’re ready to purchase.
Save for a Down Payment
Make sure you have enough savings. Keep track of your expenses, spend less on non-essential items and look for cheaper ways to do things. Learn to prioritise so you can put aside sufficient money. If you can, aim to save more than 20% for the down payment. It will reduce the interest you’ll pay over the length of your mortgage. Check out our previous post on how to save for a Home Loan for some handy savings tips.
Arrange Viewing to Visit Properties
Try not to rush when choosing which house to purchase. Visit all the houses you’re interested in to see exactly what’s included in the sale. Check whether the property needs updating. When viewing a property, it’s better to take someone else with you so it will be easier to spot problems. Once you’ve found a property you really like, visit it again at a different time of the day for another assessment in a different light.
Decide on Your Offer and Buy
To maintain your budget even after negotiations, be sure to determine the maximum price you can afford to pay before making an offer. Start your bid with an offer that gives you enough room to negotiate higher, if needed. Although you may need to engage in negotiations with the owner or estate agent, stay firm with your maximum offer so you don’t overextend yourself financially.
Once you’ve agreed on the terms of sale, ensure that all necessary documents and legal arrangements are taken care of. Complete the sale and you will be ready to move into your new home.