Tuesday, 1 December 2015

9 questions to ask before buying a house

There are few things more exciting than buying a house. After all, there’s nothing quite like knowing that the place that you call home is really yours to call home. That being said, it is a huge decision. In fact, it’s probably one of the biggest financial commitments that you’re ever going to make. Because of this, it’s vital that you take the time to really consider whether or not it’s the right move for you and your family. To help you decide what’s right for you, here are ten questions you need to ask yourself before making any decisions.

1. Is It Better To Rent?

Most people would tell you that renting a property makes no sense financially. After all, you’re giving away large sums of money each month and aren’t really getting anything in return. Despite this, there are plenty of benefits that come with renting, and it’s important that you consider these benefits before diving head first into the property market. For example, with a rental property, you’re not responsible for maintenance, which means that you don’t have to pay for parts, tools, or labor when something breaks.

2. How Is Your Credit Score?

When it comes to buying a house, your credit score is incredibly important. If your score isn’t looking too good, you’ll likely be given a higher interest rate, which means that you could end up paying thousands more than other people, and that’s if you’re even offered a mortgage. Because of this, it’s vital that you take a look at your credit score and see how healthy it really is. If needed, you should find ways to boost this score, such as by paying your bills on time and clearing your credit card debt.

3. What’s In Your Future?

Buying a property is something that needs to be committed to for the long haul. In fact, most people are advised not to purchase a house unless they’re planning on staying there for at least five years. Because of this, it’s essential that you consider any plans you may have for the future and how they could be impacted by or impact you buying a house. It’s always better to have your roots firmly planted before making such a life-changing commitment.

4. Can You Afford It?

As everyone should already know, buying a house is incredibly expensive. Sure, it may make more financial sense to buy somewhere instead of renting it, but that doesn’t change the fact that it’s something that you just might not be able to afford. After all, you’re going to have to save up for a deposit, which tends to be about 20%, and then you also have to consider the costs of moving, decorating, maintenance, and the fact the mortgage repayments tend to cost more each month than rent does.

5. Is Your Job Secure?

Before committing to anything, it’s vital that you take a look at your job and evaluate exactly how secure this job is. After all, if you become unemployed for one reason or another, you likely won’t be able to pay your mortgage, which means that you’d end up losing your home. It’s also important that you start to build up an emergency fund that covers at least three months worth of expenses. This way, if you did happen to lose your job, you’d have a bit of time to find a new one.

6. Where Is Right For You?

As well as looking for your dream house, you need to look for your dream location. After all, there’s no point in finding a beautiful home if you hate everything else about where you live. It’s important that you do your research on areas and homes in those areas before settling for anything. For example, if you found your perfect house on Rumah, then you should also take a trip to Indonesia and do as much research on the place as possible. Similarly, if you found somewhere just down the road, and ask around about the neighborhood and amenities nearby.

7. What Do You Want?

You’re never going to find somewhere that’s right for you unless you know what is right for you. This means that you need to take some time and decide exactly what you want out of your home. For example, you should know how many bedrooms you need, whether or not you want a garden, and how close you need schools to be. That being said, it’s also important that you’re flexible and don’t have unrealistic expectations. You might not get everything you want.

8. Could You Sell The Property?

When you find a property that you love, it’s important that you consider how easy it would be to sell in the future. After all, you may love the place now, but circumstances may change, and you might need to sell up and move somewhere else quickly. Because of this, you need to take all of the property’s negative traits into account. You might not mind the noisy neighbors or busy road nearby, but this could put off other people, and mean that you make less money in the future.

9. Are You Using Your Head?

You may be buying somewhere for you and your family to live, but that doesn’t mean that you should let your emotions cloud your judgment. The property that you choose to buy is also going to be a financial asset and should be treated as such. Because of this, you need to look for properties that are structurally sound and are based in a good location, rather than simply opting for somewhere that looks nice. Of course, you should choose somewhere that ticks the boxes and makes you and your family happy, but don’t overpay to get it.

Buying a house of your own is an attractive idea that certainly has its benefits, but that doesn’t mean that you should jump into it without thinking. It’s a risky proposition, so make sure that you really think things through before making any decisions.

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