Three Basic Tips for the First-Time Home Buyer

Home Buyer

You must be buzzing along with excitement when you are planning to buy a new house. It is a new season, a time of celebration, a stepping stone of ultimate independence and success. Then, reality hits you. A new house involves new expenses, bills, maintenance and so much more!

Yes, you can be overwhelmingly joyful to finally have your own home, but it is equally as vital that you maintain a strict budget for your house pre-purchase and post alike. You don’t want to buy a house and then become financially drained because you bought it! To help you out I have outlined three simple tips for you to follow:

1. Pay It All Off

You are probably wondering what paying it all off has anything to do with buying a new house for the first time and little do you know this is the most vital tip of all. Owning a home is more costly compared to renting. This is due to the fact that all maintenance costs will have to be handled by you, the novel homeowner.

Prior to even entertaining a thought of owning a house you should be getting rid of all debts. The last thing you need when purchasing a home is a debt hanging over your head. Afterwards, you can set up an emergency fund which includes around 3-6 months of your expenses. Then your finances will not be related to any monthly costs and you will have a sufficient amount of money to cover any surprise charges.

2. Avoid the Bad Mortgage Plans

One of the biggest advantages you will have as a novice home-buyer is you have never gotten a mortgage and will never have to get one. Majority of new homebuyers only demand a minimal amount of money for a down payment and then later on in life it could cost you thousands, if not millions!

Always be aware that if the deal seems to be too good to be real, it is probably wise for you to avoid the deal. To get more advice on which plans could work for you, visit the best conveyancer in Melbourne to get expert opinions and in-depth information on properties, mortgages and budgets.

3. Find the Right House & Hood

If you have a particular lifestyle and preferences then you will probably like to reside in a specific type of neighbourhood. For instance, if you are a family on a tighter budget then a townhouse or apartment could be more affordable but a house that is just for you and your family will have way more privacy.

Instead of buying a brand new home, you could go for a house that needs a bit more fixing, within a lower price range. But, do note that you will need to keep some cash saved up for any renovations, remodelling and reorganizing. Just make sure that whichever option you choose, you choose the one that is the right fit for you and your family.