Most young to middle aged adults at some point plan on entering the property market, partly as this is a great investment for your money, but more so as many just want a place to call home. While this plan is somewhat universal, most people who have not previously owned a property may not know the first thing about getting into the market. Even if you may have the basics down, in terms of getting the finance an even bigger questions looms, what and where to buy?
Well first thing’s first, getting access to the finance can be a daunting task, even for those looking at up-scaling their current residence. One of the easiest ways to ensure you are able to secure adequate financing for a home is to save up sufficient money for a deposit. This not only reduces your requirements for a home loan, but also ensures you pay back less in interest to the bank.
The next thing you may have to consider is how much money you need, how much you want and what repayment plan you are comfortable with. Often when planning households may only consider the price of the property itself, but this may not always be the only expense. Once purchased, you may require furniture and appliances or even some home repairs or improvements, and with a brand new bond to repay, there may not be enough to go around to make your house a home. It may be of great assistance to seek more financing than just the property value for all the little things which may matter. Similarly, when looking at the repayments you should always be prepared for interest rate hikes as many don’t plan for it and end up with unmanageable monthly payments.
The next and perhaps final thing to consider is the property market in general- is it a buyer’s or seller’s market. Just like all other assets, the price of your property will increase and in some cases remain the same or even decrease based on the supply and demand for that area. Generally speaking, you would like your home value to increase at a handsome rate, as this will probably be your most valuable asset for the foreseeable future. This may be a complex task for a novice buyer and speaking to a professional about historic appreciation of property value in the area as well as market predictions can be of great assistance. Nothing comes free of charge, but spending a little bit now for expert advice, can pay vast dividends over time.
Another field you may want to take a look into are rental yields for the area, as in the future you may be in a position to buy a second property or may for any reason not be residing in the house or flat and this can also put a tidy sum in your pocket over time.