There is a strange thing happening in the world today, Millennials are divided down the middle into two distinct groups:
– Those who are working towards buying homes
– Those who are content with renting
As much as the latter group is growing larger by the year, it is the former group that holds our interest today. 30-something-year-olds are now just getting down to real life issues like investing, saving and accumulating assets such as homes.
The problem is that the real estate market is not what it used to be. After 2007, things have very much changed. Homes are more affordable one minute and then not the next; lenders are more agreeable one minute and then not the next and millennials are stuck in between trying to figure out how to go about it all.
As much as the game might have changed somewhat, there are still some fundamental values that remain the same despite these changes. These are fundamental truths that not only lead to prudence but also logical and wise financial management. Here are 3 must haves for first time home buyers.
This might sound like a given but you will be surprised at how many people jump into as heavy an investment as buying a house without actually having the financial stability to sustain the process. Of course, with the age of internet marketing and million-view YouTube videos, it is not unheard of for a young man/woman to make their fortune overnight.
But unless this steady flow of income is sustainable, as opposed to the sudden, but short-lived windfall that it so often is, then buying a house might not be the best of things for you to do. Paying for the house is a hefty load to carry, but you haven’t even felt nothing yet. There are land rates, taxes and levies that accumulate and grow larger ever so often. Unless you have the financial stability required, you might not be able to sustain your ‘homeowner status’.
Granted, vendor financing is growing in popularity thanks to investors like Glenn Armstrong, Simon Zutshi, Reena Malra and Rick Otton. In these types of payment methods, buyers may opt to assume existing loans, which is less costly than taking out a new loan. But these usually apply only to previously owned homes, and you’ll need to find a seller that’s willing to sell via vendor finance.
If you are hell bent on buying a brand new property, then you’ll need to beef up your financials first before moving forward.
A healthy emergency fund
You might think that coming up with the deposit is the heaviest part of you buying your first home (and it could very well be), but that does not signify the end of your struggles. To be comfortable in your newfound status, you need a healthy emergency fund squirrelled away somewhere. You never know when you might need it. Now there are things like home repairs and home insurance to think about. If you are living paycheque to paycheque, this might prove a little strenuous for you.
A trusted estate agent
I know, in this day and age; the golden age of information. You probably feel like you can just get online and find whatever house you are looking for; one that is suitable for you and the family. What you do not know is that there is a lot of work that goes into successfully buying a house. There have been stories of people buying houses from fake owners or even people buying non-existent houses.
And then there is the matter of finding the best property for the money you have as well as all those inspections and legal requirements. To be honest, it is often just much easier to use a trusted estate agent who will take care of everything for you. Someone who understands your needs and financial situation. Someone who will find you the right house.
As a first time home buyer, having the necessary financial stability and using an experienced estate agent to find the right home for your particular needs would be the best thing you can do to move this process along and to give it the best chance of success and satisfaction.Tags: first time home buyers, what do first homebuyers need, what first time home buyers need