Do you wish to buy your first house but feel unsure about how to start the process? Don’t worry; you’re not the only one. The state of our economy is such that most first home buyers are having a hard time getting started. Real estate prices are notoriously high and the average income can’t match up. Buying a house in this day and age takes years of planning ahead and saving up. And after you’ve done all that, there’s still the matter of choosing the right property to buy.
Here are five ways in which you can save money for your first home buying experience:
- Save 10% of your income every month.
To pay for the deposit fee yourself, it’s absolutely essential that you save up a considerable portion of your monthly income. Cut down on luxuries and keep at least 10% of what you earn every month. It might be a good idea to store the money in an account that is harder to access because you don’t want to end up spending any of it. Even if you don’t wish to buy a house any time soon, if you start saving up well in advance you’ll be able to invest in a good property when the time comes.
- Consider a home loan.
It’s extremely difficult – and in some cases, downright impossible – to pay for a property out of your savings account. Home loans exist for this reason exactly. Use the internet to do your research and talk to financial experts about your needs to find out how you should go about obtaining a secure home loan to buy your first house in a hassle-free manner.
- Take account of extra costs associated with buying and maintaining a house.
When you’re fixing the budget for the purchase, it’s important to consider all the expenses surrounding a house. Some of the obvious things to keep in mind are property taxes and homeowner’s insurance, but you need to cover all the bases. This includes costs of utilities necessary in a home, decoration, maintenance, solicitor’s fee and such other things. While the thought of spending all that money might make you want to avoid doing this work right now, it will help you greatly in the long run if all these expenses are accounted for. It’s good to plan ahead.
- Pick the location carefully.
The tax rates are different in different areas of the country. If you’re buying a house in a low-tax town, you will have to pay a small fee for closing costs while the situation is completely different if the area has higher tax rates. The difference between what you have to pay for closing costs may vary greatly depending on the base price of the property. Thus, the location of your first home should be chosen with utmost care as you can save up a lot of money if you select wisely. Furthermore, you might choose to rent the property out in the future, in which case a property in a popular and well-connected area will be of benefit to you.
- Get the property inspected.
Always pay for property inspection by professionals. If the house is in a bad condition, repairs and fixtures can take away a lot of your money as well as time. Keep the age of house in mind and make sure to check all the nooks and crannies. A professional inspector will examine every bit of the house including the roof, walls, chimney, basement, pipes etc. and give you a clear idea of whether the property deserves your money.