Here’s What You Need to Consider Before Buying A House
Signing a contract for a home is easy. Deliberating on the pros and cons of your purchase is the hard part. This is because buyers will be shelling out a significant amount of their hard-earned money. For the first-time or casual buyer, this easy guide will help you make smarter decisions before you sign that piece of paper.
Know Your Wants
Before going after that shiny new home in a new development, ask yourself: are you ready for this kind of commitment? Take a step back and review these three aspects of your life, and see if they’re aligned with your next step of buying a house.
1. Your goals. Just as there are no two houses alike, buyers will also have their own quirks to consider. A millennial would probably put technology first in his space, while a baby boomer may forego the novel of what’s practical and functional. A single home-hunter can survive with small spaces and transformative furniture, but married couples will have to consider their family’s future needs.
Before committing to a dream house, make sure you know your goals, both short- and long-term. This will also help you decide whether you’ll save up to buy a bigger family home, or settle for a condominium unit in the meantime.
2. Your finances. Be realistic in reviewing your financial position. Just because you can party every Friday night with your friends doesn’t necessarily mean you can take on a home loan. The smart buyer will sit down and crunch numbers before finally deciding on what and when to buy.
First, identify your sources of income. Are they regularly acquired, such as salaries and dividends? Are they revenues from businesses and significant enterprises? Are they one-time incomes, like inheritance or lottery winnings? The nature and regularity of these sources of income will greatly influence your understanding of your net worth. Also, consider documentation of these income, in case your purchase will be made through loans of instruments issued by lending institutions.
When you have all these down, map out your expenses. Draw up an exhaustive list of expense items and be honest with your spending patterns. This will help you gauge your surplus budget after you deduct expenses from your income. The rule of thumb is that spending for home investments must not exceed a third of the revenues of the buyer.
3. Your Lifestyle. Your habits can help direct the kind of home you want. A posh lifestyle fits a hip layout. Regal homes may be an acquired taste. Modern sensibilities may be drawn to minimalism. You can stick to your tastes—or find an interior designer who can bring your dream interiors to life.
Master the Terrain
Location, location, location. Not only is it the foundation of your home’s functional and aesthetic features, it will also influence your living environment. When you’re scouting for a good piece of land, keep these three considerations as your top-of-mind priorities.
1. Physical features. Your lot’s topography should accommodate your lifestyle’s needs. A home within the metro will have the Manila air and noise akin to an urban jungle. On the other hand, a rural or suburban home will provide a quieter reprieve, but also entail a good drive through traffic. Weigh the pros and cons, and choose the one that suits your lifestyle.
2. Legal bounds. Legal restrictions, whether it’s in building permits or limitations, can become the deal maker or breaker. Some villages may have specific home style restrictions, strict implementations of restrictions for use of roads and open spaces, facilities management, and payment of dues. Keep in mind that these are just virtually internal rules in the management of a development project. Existing laws of the land may also play a big role in limiting how we use our own domicile.
3. Return of Investment. Even if you consider this your forever dream home, it’s also good to keep an eye on its long-term value. You need to make sure that the physical and social attributes of the neighborhood is not detrimental to the investment. You can see this when there are other developments going on around your area, which result in appreciation of property values. Other returns are not measured by money value but by the enrichment of one’s life, opportunities opened for the family, and social growth.
Whether you’re buying your first home or looking to purchase a good rest house in the suburbs, treat your purchase as an investment. That means putting in serious thought and taking time to buy right and buy bright.