5 Things to Keep in Mind When Buying Real Estate
When you're ready to buy a home, it's both exciting and overwhelming. You are probably riddled with questions about the process and what type of home you should buy. There is no one-size-fits-all answer. Some people have specific needs that drive their home search, while others need a basic starting point in the city or suburbs. But regardless of your situation, there are important things to consider before buying a property.
Be financially ready
Before you even begin to think about buying a house, you need to make sure that you’re financially ready. This means that you need to have enough money in your bank account for all of the following:
The deposit payment
The closing costs including stamp duty, conveyancing fees (which can be as much as 3% of the sale price)
Your monthly mortgage payments and any other associated fees
Property maintenance costs (like repairs and landscaping)
Property taxes
Understand your local market
This is not a situation you want to find yourself in. You should know what the average price of properties are in your area and what kind of properties they are before you start looking at them. This means understanding the value of everything in relation to what it would cost if you were to buy it new or build it yourself, taking into account the current state of construction methods, materials and labour costs.
Location is important
Location is the most important factor in real estate. It determines the price of a property, and it determines who will buy and live in that property. Location affects things like school quality, community involvement, traffic patterns and infrastructure development (roads, sidewalks etc.).
Location can also determine what type of people you'll have living around you. If the area is predominantly on culture or religion; then those are probably going to be your neighbours. If it's older retired couples; then that might be who lives across from you—and maybe even above or below you if you are purchasing a unit!
What you want versus what you need.
There is a big difference between what you need and what you want. What you need is the bare minimum of what it takes to live comfortably. It’s the minimum required for your basic needs like food, clothing and shelter.
But what about all those other things? The things that make life worth living? Well, unfortunately there isn’t enough room on the planet for everything we want so most people have to settle for just a few items on their wishlists.
A good rule of thumb when buying real estate is: keep your wants in check by focusing on what you actually need first (and only buy more as time goes by). It may sound counterintuitive but this approach will save your sanity in the long run because it helps prevent buyer’s remorse later down the road when people start realizing they should have made sure their house was equipped with more than just running water before moving into it!
If you can't afford it, don't buy it.
If you can't afford it, don't buy it.
Don't buy something you can't afford to maintain.
Don't buy something you can’t afford to repair.
Don’t buy something you can’t afford to rent out.
And finally, and most importantly: don’t buy something if you won’t be able to sell it in the future for more than what you paid for it (unless of course, this was a terrible investment).
These tips will help get you started on your real estate buying journey.
Be financially ready
Understand your local market
Location is important
What you want vs what you need
If you can't afford it, don’t buy it
As you can see, buying real estate is a big decision. It should be something you devote time and energy to, as well as consider all the factors that go into it. But once you're ready for this step in your life, we hope these tips will help make it easier!
So, what’s next?
If you’re still looking for more, or something a bit different, contact our resident Sunshine Coast expert; Keeta. Keeta is a buyer’s agent who prides herself on knowing the Sunshine Coast and helping the people who live and move here get the very best out of it. To reach Keeta, click here.