2 Important Things First Time Homebuyers Should Know According to 2018’s Real Estate Forecast
According to the real estate forecast in Canada for 2018, it’s very likely that more people will be able to buy their very first home next year. New homes are being built to meet the demands of the market.
This means that the real estate prices will start to slow down, making it a good time to buy a starter home. This is a good sign for aging millennials, especially since a good chunk of them dreams and plans of being a home owner someday.
Buying your first home is no joke, though. The large sum of money required to make the purchase can be daunting. This is why it’s very important to do it right the first time. Making a mistake at this point can be costly, especially for young homebuyers.
To help you make sure that you’re getting the right property, you should keep these things in mind:
Decide Whether You Want A Starter Home Or A Forever Home.
Houses are always considered as major investments by homeowners even if they have different purposes in mind. In many cases, people invest in a property so they can live in forever. Others invest in a property so they can sell it for a profit.
As a first-time homebuyer, you should think about whether you want a starter home or a forever home. These two require different kinds of investments, so it would be best to have a plan even before you delve into the real estate market.
If you want a property that you can profit from a year or two later, you should be more mindful of the real estate trends and movements. These can help maximize your earnings and ensure that you’re putting your money in the right place.
Those who just want a property of their own might be spared from the need to master the ins and outs of the real estate market. As long as they get what they need at a good price, then you can already make the most out of your real estate purchase.
Do The Math
According to a survey, a large number of first-time homebuyers enter the market without even having a budget in mind. A bigger number only has an estimate. Both techniques will put your financial stability in danger so you shouldn’t really do something so risky.
Nowadays, getting this done isn’t as difficult as it once was. There are actually lots of resources and online calculators that can help you crunch the numbers. You just really need some patience and a good amount of time to spend on the task.
Aside from the actual numbers, you also have to keep in mind that your lifestyle affects your budget as well. While you may be able to afford a house on paper, remember that other expenses also have an impact on your spending capabilities.
If you’re one who likes to go out for drinks, buy expensive things, or get take outs on most nights, you might need to give them up if you really want your own home. It’s highly likely that you’ll need to tweak your lifestyle a bit if you’re committing to homeownership.
Budgeting beyond the purchase price is also a must. Keep in mind that the price tag of the property is not the only thing you need to pay for. Creating a comprehensive list of every expense that you’ll need to spend money on will help you manage your finances better.
These are just two of the many things that first-time homebuyers need to know and do. Keep them in mind and you’re sure to find yourself ready to make one of the biggest purchases in your life.
