House Buying Guide for Millennials
Purchasing a house is a huge decision and as much as possible, you wanted to be prepared until the very last step. This article offers a quick guide for millennials on what factors they should consider when buying a house:
- Set Your Budget: By mapping out your present income and expenditures, you’ll be able to determine how much you can afford.
- Find Out What You’re Entitled To Review government-funded initiatives to know if you are eligible for programs such as first home buyer schemes or grants.
- Determine How Many You Should Take Out: Find out how much borrowing limit and repayment you can keep up.
- Develop a Savings Plan: Establish an attainable savings plan according to your budget, potential home loan, and entitlements.
- Look for The Ideal Home Loan: Reach out to your chosen lender and apply for mortgage – you need this before you can buy a house.
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Pursuit of a New Home
Once you’ve planned everything out, here comes the fun part – home shopping! You already have your finances and budget set in place, it’s time to find out what type of house you can afford. Of course, you already have an idea of what kind of house you want to live in. If you already set your heart to a specific suburban area, chances are you also aligned your savings and budget around this option. However, it won’t hurt to have other range of options as well. Look around for potential homes around the area that you like, who knows, maybe you’ll have a change of heart.
Why Home Inspections Are Essential?
Now that you have covered the areas that you want to live in, contact various real estate agents about the type of house that you are searching for. The job of real estate agents is to sell houses, so it’s great to work with them and compare their options to your own. Once you’ve found the property that you love, make sure it’s not in shamble. This is very important if you are planning to move right away. Here are some inspections that you should do:
- Electrical inspections
- Strata inspections
- Pest inspections
- Property or land surveys
These inspections might cost you around $200 but it’s worth your money since it will save you from thousands of financial expenses in the future.
Make an Offer
Inspections are done, now what? Basically, it’s time to make an offer. The important thing you should remember when negotiating for price is to create a leeway bracket for yourself. If you badly wanted the house, then you should be versatile with your offer. You shouldn’t go way beyond your budget but you also don’t want to lose the bidding for your dream home. There are two methods on how you can create an offer for a house: auction or private sale. Private sale is when you buy a house straight to the real estate agent or owner of the property. On the other hand, auction is when potential buyers come together in one place and bid for the house that’s for sale. You can choose which method will work best for your interest.
Facilitate The Legal Work
So, you’ve found your perfect home and your offer has already been accepted, what will you do next? You wi-ll forward to contract signing. It is a vital step so you need to read the fine print carefully before you sign anything. Ask for questions and clarifications if you find some information unclear. This is also the best time to raise any changes to the contract, if you wish to alter anything. This calls for the help of a lawyer so make sure you got one by your side before you sign the contract. Generally, there are two kinds of contracts that you will encounter: conditional and unconditional contracts. Conditional contract will state that the sale of the house is only effective once certain conditionals are fulfilled. On the other hand, unconditional contract will state that the deal is effective once the contract is signed.
Apart from the contract, you will also come across conveyancing, which is the transfer of property title from the owner to yourself. For this particular legal work, you will need a conveyancing expert or solicitor to help you with the entire process. Expect costly service fee but they will guarantee that everything will go without any hassle.
Settlement and Home Sweet Home!
Legal works are done, now time for the final step – settlement day! You will meet up with the owner of the property to exchange your money for the title of ownership, then the house is yours. Congratulations you just purchased your first home! This is a huge achievement that required effort and planning, so don’t forget to give credit to yourself. Home sweet home!
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