Owning a home can be very interesting to anybody who loves personal space. This explains why one would wish to complete a home-owning process as soon as possible. The impatience that you place in the whole process will lead you to make mistakes worth regretting after some time. Just as you would want to purchase the best car, you should also strive to get the best home at your capacity. Here are some mistakes that homebuyers make and how you can avoid them:
Thinking as a buyer
Most buyers see themselves in the position of a buyer. They only consider the price tag of the home and their capacity to pay for it. If the terms are favorable, then they seal the deal. This is where they go wrong, and you should not sail in such a boat.
It would help if you instead thought like a seller. You imagine that one day you might have to sell it. You don’t need any nightmare when that time comes. Imagine you are selling the home you are yet to buy. What would your possible client look for? Will they look for garage space? What size of kitchen and bedrooms would they be attracted to get? Now, use the possible answers to find out if the home on sale is fit for you.
Over budgeting
You probably feel like having the best home in the new neighborhood. That’s a pretty good idea. However, you don’t have to compete with people. Compete with your capacity. As you budget to get the home, ensure that you plan with an amount that you can ideally raise for the duration that you should be paying if you go for a mortgage.
It would be wrong to make a budget that you will struggle to accomplish. Most homes in Singapore can cost between S$300,000 to S$10million depending on its capacity. If you cannot purchase something more than $10 million, it would be better to avoid it at all. Remember, the payment of your mortgage should not be a lifetime demand. It is better if you can finish paying within one or two years.
Purchasing an “online home”
This is the greatest mistake that most buyers make. The images you see on the online marketing platforms might not be the ideal home that awaits you. At times, the terms for purchase might not be as stated. The attractive information online is to attract any buyer. Well, online marketing is making home purchases very simple. However, you should never depend on them entirely.
Once you have been attracted by the information online, get the seller physically. If you are not well conversant with real estate, you can tag along with someone with the right information. He or she will help you point out the critical factors to consider as well as the best price depending on the market structure. Never sign a buying deal before you see the structure. You could even end up getting conned for something that never exists.
Poor preparation
A home is not some beautiful shoe or jewelry you can purchase and use once then do away with. Some homebuyers do not research all when buying a home. For them, once they have the money needed, the next thing is to jump into what is available. This doesn’t seem right.
Many factors come in when you are choosing a home. You would want to know where best you need the home located. You also need to know the prevailing market prices for homes in that region. If possible, find out the emerging trends in home design. Such factors will help you get something that you will be proud of.
Impatience
The process of purchasing a home can be very demanding. It even worsens when you want to get it through a mortgage. The long process is, however, for the good of the buyer. Well, at times, you might not understand every step. As long as you have a lawyer helping you through the process, you should be patient to the end.
It is possible to buy a home within a day as long as you have the cash. It might, however, work against you. Even if it takes one month or so to complete the process, with no document unsigned, you should be patient.
Running away from renting
The greatest mistake that you should make is to buy a home so that you escape renting. Running from a problem is never a solution at all.
You should compare the price of owning a home, especially in Singapore, to renting one and go for what is most convenient. For instance, you should include your transport cost to the school and work in comparing the value and convenience. Also, consider the other cost of owning a home like tax and home equity. It is better to rent than buying a home if you are to be in a place for a short time.
Assuming home inspection
Whether you are buying a new or used home, its inspection is mandatory. When the home is new, most buyers tend to disregard such a task.
You should ensure that what you are paying for is intact. If there is anything that would need repair or maintenance, the inspection will help you determine the cost even before you sign the deal to own the home. Do not worry about the inspection. Several companies will carry this task for you at an affordable fee.
Job shifting
When buying a home through a loan, stay at your job as long as possible. This makes your payment secure. Changing your job might ruin your relationship with your lender, especially when you get to a lower-paying job. You need to keep the relationship until you are done paying the loan.
Some lenders might auction the home if you stop following your commitment to pay as agreed. If the new employer is not willing to cooperate with your lender, it can be a whole mess you don’t want to get into.
Owning your own home sounds classy and gives you peace of mind. Do not make the above mistakes if you don’t want trouble. Once you own the new home, you got to get it insured. It boosts your peace regardless of the risk that might be your way at a cost you are comfortable paying.
Get more info on MSIG about home insurance. Are you planning to buy a home soon? Take care not to make any mistake.
