Top 5 Common Mistakes Made By First Time Home Buyers And How To Avoid Them
Initially when people decide to buy their first home they tend to be overwhelmed and the mixed feelings often makes them jump into mistakes. Listed below are the few often made mistakes by the first time home buyers and measures on how to make a sound judgement.
Underestimation of Home ownership Cost
There are many cost factors that come into play when you are planning to own a home, the cost might rile up if you are not ready. This ownership cost is nothing to be terrified about but since it’s your first time buying a home there are numerous cost elements you might overlook. There is certain cost which will not be covered under your mortgage and that will be your maintenance cost, electricity/water/gas expense, home insurance, Dubai Land Department fee, property registration fee, valuation fee, mortgage registration fee and mortgage processing fee. This might seem like a lot of overhead payments but having a keen understanding of what all cost you shall incur and being organized will save you from any financial burden.
Limiting Your Search
Note that your interiors can always be changed depending on how flexible your floor plan is but choosing wrongs a home or area will not help you neither suit your needs in the long run. Sometimes home buyers simply look at an adoring property and immediately finalize on wrong price, home and location. Majority of the home buyers are end users with no intention to sell their property in the near future, so when you are an end user you should look for a home with the most flexible floor plan, right location with apt facilities/amenities and check the average market price.
No Price Focus
We know buying the first dream home gives us the best feeling and first time home buyers tend to be swept off by their feet which often lead to decisions taken on impulse rather than logic. Home buyers should take note of what price range to choose from; this initial step would let you choose the right mortgage plan. Get few quotations of properties and by using a mortgage calculator online you can estimate your mortgage pay, this will offer you an insight on whether the chosen property can be a financial burden or if you can ease fully deal with the cost. Buying more home space outside your price range will cost you in the long run because ultimately you will have to pay for the repairs, maintenance and etc. Do not choose the maximum mortgage amount that will get approved for you, instead go for a mortgage plan which you can conveniently pay on time to time basis.
The future of the property
As stated earlier in this article home buyers tend to be end users and on rare instance they sell off their property later. To be on the practical side; always choose a home which will yield you in future, this is for you to have a win-win scenario. You buy a home and later the property witness’s impressive capital appreciation due to the property being prominent and distinct location facilities; so you sell it at the best price and buy a bigger home or invest the money in whichever way you wish. Choosing a right property in an apt location with favorable amenities/facilities is likely to experience an appreciation. Do your market research to find the most suitable property or click here to contact us and get a Free Quote!
Brainstorm over the following elements:
Is the street/area you are choosing going to have more developments favorable to your property in future?
In five years time what all infrastructure projects are likely to come up in your locality?
What is the price value for other homes currently in the specific location you for opting to buy your home?
No savings
Home buyers end up with no savings after spending majority of their savings for buying a home. Plan your purchase carefully, do not put your entire savings into buying a new home, instead use 30 to 40% of your savings with a good mortgage plan and this can put you in complete ease with half of your savings still in bank to use it only during a need.
