The reality of having your dream house is a beautiful feeling, it is indeed an amazing experience everyone would love to and should have.
Buying your first property can be a challenging task, but the beauty of it is millions of people have been there and have successfully gone through this process to purchase their first property; armed with the right information, you will have the best possible chance of getting a great, affordable property at a price you can afford.
Because of the risks associated with the process- one needs to be cautious. These steps are meant to guide you through the process of purchasing your first property. You should follow the steps in order to ensure that it is done safely and properly.
STEP 1; FINANCIAL CLARITY; What is your budget?
Before getting too excited about your dream house and clicking through pages of online listings, there’s need to do a serious audit of your finances. First, you need to take a close look at your monthly income and savings. Do you earn enough income to generate the amount required to purchase your dream house? Don’t even consider purchasing a property before you have emergency savings account with three to six months of living expenses. You need to consider a property you can afford, a property within your means.
Buying a property is a big step involving substantial long-term financial commitment, so think hard about what you can afford.
STEP 2; Knowledge of the Market/Market Insight
Yes – you will have to conduct an extensive research about the real estate industry- trends, insights and information that will assist you in making an informed decision. These can be gotten from real estate experts, property magazines & other online resources as well as real estate reports. Fine & Country also conducts bespoke market research for intending buyers. (Please watch this space for an event targeted towards first time home buyers this April).
Having clearly identified your budget and gained relevant knowledge about the real estate market, figuring out a good payment plan for your new home is very important.
STEP 3 – PAYMENT PLAN:
Most first time home buyers are always under the impression that paying for a home only involves applying for a loan and making payment to the developer, however, It will surprise you to find that there are various payment types & options. Figuring out the best payment plan for you can go a long way in ensuring your financial stability.
- Down payment plan: This involves you making an initial deposit of the price upfront to the developer. The remaining amount is then released by your bank to the developer within 45-60 days, the duration may vary depending on what is agreed upon between yourself, your bank and the developer.
- Possession-linked payment plan: This is a more straight forward payment plan that involves making a down payment at the time of booking the apartment and the remaining balance is paid once the buyer takes possession of the property. It is ideally suited for first time home buyers looking to purchase completed projects or projects near completion.
STEP 4 – IDEAL LOCATION:
Your intended property location largely influences your budget. Location is a key factor that influences the price of your property. Often times you need to consider proximity to your place of work, if you have a family you need to consider proximity to your children’s school, family, friends, place of worship and other socio-environmental facilities. This should help you narrow down a general region in which you wish to live.
To be continued…