. It’s a sign that we’re growing and ready to accept the responsibility that comes with home ownership. It’s also a sign that we’re ready to move out of the rental market and into something that we’ll stay in for a long time.
There are two types of people who jump into the home ownership market- those are fully repaired and have be saving for year to afford something that they love, and those who walk by an own house sign and are ready to sign on the dotted line.
Being a personal finance blogger pretty much means that I preach the research method. There is nothing like having a mortgage to settle you down. Gone are the days of traveling on a whim, or shopping for the sake of shopping. No, buying your first home means that you’re responsible, and such.
I’m not saying that it’s the end of the world because it isn’t but there are few things that you need to keep in mind before purchasing your first home:
Budget: This isn’t as simple as moving what your rent money into your mortgage money. You need to start accounting for property taxes, repairs, and things like lawnmowers, and snow-blowers. There is the cost of upgrading different parts of your house. At some point you’ll want to do your bathroom or kitchen- that all takes money.
One of the other parts of your budget is your interest rate on your mortgage. 1/10 of a % may not seem like a lot, but it does add of over the term. That extra $50 bucks could mean a vacation this year.
Location: The bright lights of a gentrified neighborhood fool some people, but that’s not the best place to get the most bang for your buck- finding an area where the change is slowly starting to take place is a win-win.
Type of Property: Not everyone needs to be in a big house with a white picket fence- it just doesn’t make sense. Buy something that fits your lifestyle today and at least for the next 5 years. Knowing your options is key, and spending time on site like http://www.ibuynew.com.au/ will help you understand what’s out there. Say you want to be able to commute to work easily without having to buy a car, so you settle on a condo downtown, or you like want to be able to travel, and don’t want to worry about the upkeep of your place, you buy a townhome or apartment. It’s these thing that are really important in your house hunt- particularly in your first home.