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Here is what you need to consider when buying a new home

by Greg on April 6, 2018

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Investing in real estate is a significant financial decision. It is also usually a long-term financial commitment. Yet the overwhelming majority of the people rush into this, as a result, end up making a wrong choice. Here are a few things to think through when buying a new home.

1. Budget

The real estate purchase decision requires years of savings. The majority of the individuals gets a “payment shock” when they move from a rent payment to higher mortgage payment. To avoid this shock when buying a house, it is wise to know your budget beforehand. Therefore, the first thing that should be considered is the available budget. The estate agent shows the properties as per your budget.

However, in case the house is financed by a loan, it is vital to consider the eligibility criteria. As owning a house carries long-term expenses such as repair and maintenance costs, these should also be added to the budget beforehand. It is vital to consider these points if all the savings are being used up in the purchase.

One also needs to consider the size of the house before buying the property. Bigger houses seem very tempting, but a bigger house just means more space to maintain and more bills to pay.

2. Location

One should always look for a house that has a good curb appeal. A location that does not seem appealing at the time of buying will not be in the future as well. This importantly determines the property price in the future. Thus, it is imperative to consider this factor for the resale value in future.

Location wise, buying a house in a good catchment area is always a better choice to make. A family with children or a couple planning to have children in future, the proximity to school is an essential element to consider. Homes that are closer to the school district are highly sought after and sell for a high price.

The proximity to the workplace should also be considered when buying a house. The length of the commute to and from the workplace can affect your travel expense and the time you spend with your family.

Proximity to friends and family must also be considered because the home may not feel very homey if it is far from relatives. For someone who is socially active, proximity to leisure spots also matters when making the purchase decision.

The availability of infrastructure is another vital element that should be considered. This includes proper drainage, water supply, rail, and road connectivity. Many people are willing to pay an increased price for these privileges when considering the future sales prospects. Hence, location is of utmost importance in real estate.

3. Neighbors

People living next door can greatly affect the value of a property. It is ideal to get a survey done of the neighborhood of any property that you are planning to buy. Also, it is important to consider the if-then scenario; for example, an empty plot next to the property, if purchased, may have a building constructed there in the future. This could affect your privacy and also block the flow of air into the home.

To identify a great location, check for renovations and construction in the area. This is a sign of an up and coming location. Likewise, a locality with many “for sale” signs shows a declining area.

4. Crime rate

The crime rate in a neighborhood must also be considered as safety is much more important than any other factor. Areas with low crime rates enjoy higher property values and are safer for families.

5. Structural Flexibility

If future changes in property are to be made, It is imperative to consider the flexibility of the property. One must make sure which internal walls are structural. Also before buying, one must identify the potential for future extensions or attic conversions.

6. Basic factors

Some other basic factors that need to be considered and are sometimes overlooked are the number of rooms that are required now and the number that will be necessary in the future. The natural light that comes into the house, for example, is a factor that needs to be considered.

Also, the size of the garden, maintenance of cost of having a lawn, the presence of a garage or parking space that is needed are also certain basic factors to be considered. Adequate ventilation is also required to maintain a good balance, especially during summers.

7. Direction of windows

A small detail that is majorly overlooked is the direction of the windows. This helps determine how much sun or breeze the house gets. An ideal orientation is usually a house that gets the right amount of sun in winters and an ideal amount of cross ventilation during the summers.

house orientation
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8. Age of the property

Buying a old or a new house has its advantages and disadvantages, especially when the investment is made for a long time period. Older homes require more repairs and other day-to-day expenses.

The depreciation or wear and tear of the property with time limit the repairs with replacement. Saving a few bucks at the time acquisition could result in more expenditure in the long run. On the other hand, a newly and firmly built real estate might save up on these costs. People in general tend to make this mistake; thus the age of the property needs to be considered as well when buying a new house.

Purchasing the house of your dreams is a major life accomplishment. Since people aim to stay in their house for a foreseeable future, it is necessary to invest in a property that is practical. Using the above-mentioned points of consideration, you will be able to make a better purchase decision for your house.

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Evie Harrison

Evie Harrison is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
Find her on Twitter:@iamevieharrison

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