You’re working, you have enough funds and you want to buy a house!
But…the thing is, do you really?
Bills, electricity bills, plumbing, potentially maintenance and repairs…
And all of those are like, monthly payments.
So first ask yourself:
Why do you want to buy a house? Is it because you’re looking to move out? Or is it because you want a new start? Or maybe, is it starting a family?
It could also be because you want to be a landlord, and rent out the house as an asset 🙂
Either way though, buying a house isn’t exactly easy and needs a ton of commitment. And time. And money.
Is there anything I should do before buying?
Yeap! A crucial one, is of course, research. Considering that you’re practically going into a long-term thing (having a house is basically having a long-term relationship really), you should make sure that you don’t really end up regretting this.
Check out the market prices (average house price) of the house, ask about the neighbourhood. Don’t be afraid to dig deep into the history of the house, the architecture and everything! This is cause some houses (might) have unsteady foundation, which could lead you to spending a lot of money on refurbishing and getting the house up to par.
- Have a good credit profile
Houses are expensive to say the least! If you’re going to take out a loan, make sure that you have a good credit score. Banks are…quite picky about that.
A good credit score shows that you’re a good paymaster and also financially responsible. Therefore, a good credit score to banks is basically a sign of good credibility 🙂
Factors that negatively affect credit score includes repeated late payments or not paying back the money owed, so it’s important that you pay your bills and stuff on time!
- As much as you kinda don’t like to…gotta do the math.
Numbers might seem like a pain, but sometimes you just have to do what you have to do.
Grab a calculator and make a list of expenses you need to take into account. Here’s a basic list to get you started:
- Water bills
- Electricity bills
- Internet bills
- Cleaning (if you’re going to hire a part-time/full-time maid or something)
- Car and car expenses (if you have one)
- Food and beverages / Groceries
- House maintenance and repairs
- Furnishing costs
- Renovation costs
- At least 10% for savings
- Taxes (if applicable)
- Find a house
Got your budget and research sorted out? Start checking out some potential homes! Just make sure that they’re within your scope of budget and have the necessities that you need.
Make sure you have a list of questions to ask. Get all your concerns addressed, and maybe negotiate the price…
Depending on how long the house you’re looking at has been in the market, you might just be able to get the house for a cheaper price 🙂
- Get everything ready
Documents, documents, documents! Maybe apply for a housing loan (just make sure you stick to the terms and conditions!) if you need one. Get all your documents ready. And don’t forget, you’ll also have to consider:
- Legal and transfer of ownership fees
- Booking fee
- Down payment
- Stamping fees
Call a few banks for an estimate how much you can/have to borrow.
- Get a lawyer
And get them to help you with the process. It might be a tad pricey, but it’s more than worth it for the peace of mind that you get everything settled properly 🙂 You’ll need their help with the SPA and loan agreements.
- Make an offer, close the deal
Depending on whether it’s your secondary property, you might have more documents to sign and things to pay… so make sure you have everything prepped!