First time homeowners need to gain knowledge
Many first-time homeowners feel intimidated when purchasing a home. Most are between the ages of 27 and 40 and are unsure of the buying process.
They also worry about how to buy and what they can afford if they find their ideal property. Some feel uncertain and doubtful, and give up their search after a short period of time.
Below are some of the main concepts about home ownership:
1. Don’t delay the decision
Soon house prices will start appreciating. Home ownership will become less affordable. So putting off buying a home could cost you much more later. Carpe diem – there’s no time like the present to buy a home.
2. Find out what you can afford.
COVID-19 it has changed the way people look at homes. Fast fibre Internet together with a work-from-home station are necessary nowadays.
Lots of people work remotely and spend more time at home. Some create gyms and exercise rooms as well.
However, some believe they can’t afford to buy a home that suits their needs so they decide to continue renting. This means they miss out on creating wealth over the long term and may never get into the market.
Owning a property is a sure way to create wealth. But it is a long-term growth asset – 10 to 15 years plus.
When in doubt, speak to your bank or a bond originator who will be able to advise you on affordability.
3. Deposit – is it required?
Saving for a deposit is often viewed as one of the biggest obstacles for homeowners. This is not always true.
Many first-time buyers believe they have to have a down payment of between 10% and 20% of the value of the home.
This is not always the case. There are lots of criteria that banks use to assess the creditworthiness of a borrower.
The best way is to start a conversation with your private banker, if you have one. Or go and see a bond originator and you could be surprised.
