Prepare Yourself to Buy a House Even When You Are in Your 20's
For most recent college graduates,
purchasing their first home may not be a financial reality or a top priority.
But the benefits of homeownership should be conveyed to young people in their
20's the same manner as anyone else. Buying
property in Malaysia and owning a home provides a vehicle for building
equity, reducing tax liability, and investing in real estate. The following
strategies can help young people in 20's successfully navigate the real estate
market.
Save and Establish Your Credit History
The first step to achieving financial
independence is to save a portion of your income for future needs consistently.
Savings
early in life can contribute to increasing the size of your down payment
and reducing the monthly payments on your first mortgage. Establish your credit
and maintain a favorable credit history by paying all your bills on time, every
time.
Know the Budget
Perhaps the most critical point of
information in searching for your fist home is what you can afford. Budgeting
for your first home requires that you consider all components of home ownership
such as mortgage payments, property taxes, home insurance, association fees,
repairs, etc. Knowing your upper limits and prequalifying for a mortgage before
you start your home search can help save you time and wasted effort.
Define Your Purpose and Identify Wants vs. Needs
Once you know your price range, the next
step is to make a list of the reasons why you want to buy a home and the
characteristics of the property that you would like to find. First-time
homebuyers often find that they must make several compromises to stay within
their budget. For example, you may not want to compromise on location, but you
might be willing to forego an extra bathroom to buy a house in the neighborhood
of your choice.
Research and Do Your Homework.
Today there are many online avenues for
first-time homebuyers can explore to advance their search such as PropertyGuru among others. Look for
information on comparable sales and for sale by owner websites to get a better
feel for how the local real estate market is operating. If the property is for
a potential investment, identify the characteristics which would lead to a
strong return and resale value. By doing preliminary research on your own, you
will be more informed and prepared when you meet with your realtor.
Choose a Realtor to Represent Your Interests
Now that you have researched the market,
identified your reasons for buying a home, and the characteristics that you
value in your first property, the next step is to select a realtor that is best
positioned to deliver the results that you require. A good place to start your
search is with friends and family, as they are most likely, to be honest, and
forthcoming about their experiences. Always choose a realtor that you can trust
and who works exclusively in your best interests.
Be Flexible and Open-minded
Despite all efforts to be prepared,
informed, and satisfied of your search specifications, there will almost
certainly be additional opportunities to exhibit flexibility and
open-mindedness as you begin viewing potential properties. Keep in mind the
purposes for which you want to buy a home, and determine how critical location
is to this equation. Also, consider the opportunity costs involved with travel
time both to work and other places of interest.
Property promotion in the form of hefty
discount on the price per square feet, interiors/furnishings absolutely at no
extra cost, glamorous amenities and maintenance charge waiver along with rental
assurance helps properties sell like hot cakes. However there are some
significant points that a buyer should know in order to zero in on a good
property be it for an investment or for a living. The points mentioned below
can help broaden your perspective on buying a home serving as guide for your
property hunt:
The ideal home.
With enormous choices around, it could be
confusing to find the right home. While individuals with small family might
want go for a builder's apartment, newly married couples who have just moved
out looking for a posh lifestyle with a sprawling community would opt for an
integrated township. Therefore it is better to first understand the ups and
downs of individual houses, townships and apartments, compare them to find out
the one that caters best to your requirement.
Choice of location
Many homebuyers pay little or no attention
to the location factor. This
is a significant factor that might eventually incur huge expenditure if
left remiss. If the house you decide to buy is located in the outskirts of the
city, it is going to cost a bomb to travel to work or school no matter how
attractive it is. However if you end up in a place that is not going to fit
your social need but is going to save sometime you might still regret and
consider re-locating again. If the purchase is an investment, it is wise to
find out the appreciation value of the locality. It would also be sensible to
choose a property that is well connected by public transport.
Choosing the right developer
As much as it is important to consider the
style of building, it is equally
essential to check the reputation of the developer. This would ensure you
are in safe hands particularly when you are buying a property with possession
as the primary objective. Reputation of the developer not only reflects in
their promise of sticking to the time frame while handing over possession but
also in the way the building is constructed. A well-experienced developer would
ensure there is enough ventilation. His choice of location would also be such
that you are free from external disturbances (e.g. close to industry outlets,
bad approach because of improper roads etc.). This will pay off as many
developers are also known for their optimum utilization of space while raising
the building.
Right Time.
While you know it is right time to buy a
house, it is imperative not to be hasty. A prudent buyer will sift through all
the choices, take time to weigh the options before settling in for the ideal
home. Do not fall prey to superficial advertisements. It is worth investing
some time doing research which is going to translate by appreciating
monetarily. At the same time keep an eye on the fluctuating market. While, it
is important taking enough time to assess what is suitable, it should be borne
in mind that taking too long to make a decision would only leave you with very
few options. If they were not interested in owning a house, they would not have
walked into your open house. They would have spent their Sunday afternoon
walking into a clothing store, or a furniture store, or a sporting goods store,
or a car store. They walked into your open house because they are interested in
a house. You need to say hello to at least one prospect every day.
Follow Through with an Offer.
When you finally walk through house door,
you feels like home, satisfies your requirements, and is within your budget,
make a tender! By now you have put in the time, researched the comparable, and
teamed up with a realtor ready to negotiate on your behalf. Identify what is
most essential to the seller (price, closing costs, etc.) and negotiate for
other concessions that generate additional value for both parties at closing.
Buying your first home is one of the major
accomplishments of your life. For first time homeowners, the home buying
process may seem daunting at first, especially for young people in their early
twenties. However, you can position yourself for success and homeownership by
following the simple strategies outlined in this article.