Most people think it is easy to buy a house. You look for a place you like, see if you can afford it, and invest. Simple, right? Actually, no, it is not that simple. Buying a house is a skill which you learn before finally making the big decision. It is not something you can do without any type of deep planning and information. If you are not a millionaire, chances are that your house is going to be the biggest purchase of your life. You invest a huge amount of money in a house which is the reason why the chances of making mistakes is also quite high. Now, since your home is such an important purchase of your life, you wouldn’t want to make any major mistakes. These could prove to make your life difficult and leave you with regrets.
Clear up your thought process
Now that it is clear how important it is to be careful when purchasing a house, this post will teach you what you should do to find and purchase your ideal home. The first and foremost thing you need is a calm mindset and a rational thought process. Yes, it is very easy (in fact, too easy) to start associating your home with emotions and a place you create memories. Despite this, you need to bring your head down back to the ground and start seeing buying a house as a transaction. In rational terms, that is what it is. Purchasing a house is a huge transaction and you have to have a business person’s mind for it. You are not a mother or a father, a husband or a wife, a sister or a brother, you are a person of business who needs to conduct a very important transaction. You have to be a strong and rational person before you go ahead with the process of purchasing your own house.
Look for the right location
After you have cleared up your head and made sure that you understand the gravity and importance of the situation, you now go ahead and look for a location which suits you. It is important that you look for an ideal location before you look for an ideal house because the location you choose will have a huge impact on various aspects of your life. Where you live is more important than in what way your house is constructed which is why you need to browse through a series of locations which look good to you. How to choose the best location? Which place is the best for your life?
The answers to these questions can be answered by considering a few things about your lifestyle and financial status.
- Imagine you don’t have any personal vehicle and have to travel by walking
- The first thing when looking for the right location is to imagine that you don’t have any cars, bikes, or whatever and will have to get around on your own two feet.
- Even if you do have a car, it is important to think this way because you don’t want to be spending all day burning fuel just to get some groceries.
- Now that you don’t have any vehicle in your imagination, how will you get around to different places of necessity? How long will it take for you to get to the supermarket, to drop your kids school, to get to your workplace?
- Calculate the distance of public amenities and useful places from your location and if everything seems valid if you are sans you vehicle, the location is all right and can be shortlisted for a final decision.
- Can you afford living in this location?
- Some locations are more expensive than other – this is a fact we are all aware of.
- Living in certain societies can cost a lot more money which is why you need to ask yourself this one question – is it really worth investing money just so I can live in this location?
- List out the pros and cons of the locations you like, see if you can find cheaper alternatives somewhere else, and move on to the next step.
Should you rent or buy?
Rent vs buy is an ongoing debate and the answer never seems to be straightforward. While many people say renting is useless and buying is much better since you build equity, when it comes to saving money, rent is a better option.
In a very concise way, the question can be answered simply based on the type of location you choose. If you go for an expensive location, you should rent as it will save much more money but if you are going to live in a more affordable location, buying trumps renting.
Make the process easy and just use this calculator to see which option is best for you. Did you know if you have an annuity you could cash it in to give you more leverage? There are plenty of advantages and disadvantages to either renting or buying a home.
Go for a fixed upper
A brand new and fancy luxury house seems like a great idea to many of us but the reality is that a fixed upper will also be just as good. The difference between a fancy luxury house and a house which needs repair is great. A house which needs some fixing may seem like a pain but investing in it is much smarter. The cost of renovation, no matter how high, will always be lower than the difference between the prices of a fancy luxury place which is why you will save money by going for fixed upper.
Don’t pay attention to smaller details which can be easily altered
You enter a house for inspection. The location is great, the house looks good from the outside, and everything is fine but as soon as you enter the house, it smells bad. The carpet is moldy, the walls look ugly, and the furniture is creaky and old. So, you decide to not purchase this house because it smells and feels awful. However, this is a very bad way to make the decision because these things can be altered and one should not give up on a good deal for things like these.