In this article, I will share with you ten quick tips for a first time home buyer to find and choose your first investment property, the house of your dreams. These are the exact steps investors follow to buy and sell houses and make a profit. If you follow these, your investment will perform well in the long.
How to Buy a House as a First Time Home Buyer
As a beginner, you should buy your first property near your home. Because you know the place well than anybody else, you should take advantage of it. The successful investors say:
- Always start with your home areas and move forward with a different location.
But the problem is we neglect the properties in our circle, as we ignore how many stairs we have in our house and how many steps it took to get me down there. We never noticed that. That was the big mistake we should correct.
So here are those ten best tips for a first time home buyer that will help you find a great investment property near your home as an ultimate investor. As they say:
- To change your life first, change your perspective on it
Table of Contents
1. Take A Slow Drive
Take a slow drive in your area and look at what’s happening around you, and what’s noticeable.
- Are there new buildings appearing?
- Are there new businesses established?
- Are there new jobs created?
Drive slowly and look with an investor’s eyes. Take an alternate route in the morning or the evening. Do it during the holidays or any other occasion. You will have a lot of information about that area that many other investors will miss.
I know a place where people only gather in the morning and the evening. That is why they call it the morning and evening market. You will never see a person besides that time. If you look a little bit closer, you can find a good opportunity there.
So take a slow drive and find the unfindable. Look at the things that everybody else is missing or avoiding.
2. Take A Different Way Today
Take a different way today, turn your car and go through a different road. Buy your groceries from other places, use small roads instead of highways, and ask people about properties that you want to know about. Do it a little differently.
That information will be priceless. Maybe you can find a property at a low price. Just do it, and you will see a new world of opportunity will come up to you to invest.
3. Look For The Path of Growth
Find out how this market can perform in the long future. For example, there is a building in the market that is attracting small business owners and renters. If I build another one beside it, will it perform as I think it will?
There is always a risk involved in real estate. In order to reduce the risk, you need to go deep. The more you learn about the market as a first time home buyer, the less the risk will be.
4. Neighborhood Environment
Collect information about the people who are already living in that area. That can give you some core sectors about that area. For example,
- Are people coming to live there, or are people leaving that place?
- If yes, then what is the reason behind it?
- What is the condition of the building?
- How good the light and the parking is?
- What about the entry and exit of the building?
- What is the quality of the cars people dive into that area?
- How good is the business in that area?
- Does the market attract traffic?
- What was your first visual impression when you saw that place?
- What is the best reason to invest here?
Specify everything, write it down and try to predict 5–10 years into the near future.
By answering these questions, you can have some core data that can turn your investment in 360 degrees, and you will be able to make the best decision possible.
5. Keep Your Eyes Open
That is too expensive, or the area is too cheap, do not buy a house there. It is what your friends and your inner person may be saying to you. If yes, then you are overconfident, which is not good.
You can find a great property in any place. It does not matter where the property is. Whether the area is expensive or not. It does not matter. If your criteria are in place and it’s well enough, you will find good investment anywhere.
Remember the first investment you will make will create the base for your real estate journey. So take it very seriously because it can make you or break you.
Now explore what step you need to follow before you make the payment.
6. Get on A Fixed Budget
When you are buying a house, the budget will go over the roof most of the time. It happens to every first-time home buyer. That is why you must fix a budget like I am not going to spend a single penny over it.
If you do that, you will get what you need, not what you want. Don’t let your emotion have an effect on your decision. Do it rationally.
7. Choose A Reputed Developer
As a first time home buyer, this is the biggest mistake people make. You should never buy a house from a developer who has a bad history. Most developers will try to clear their public image, but if you research a bit, you can find that these developers are not what they seem.
As a first time home buyer, always choose a reputable brand or at least a good developer in your area to get a safe and secure transaction without any legal hassle.
8. Select A Good Home Loan
A home loan is required to buy a house, and most banks are ready to give you a loan. But the problem is they will charge you extra interest on that debt and awful services with it.
When you take a loan from banks, make sure they are reputable, liked by the public, have low interest, and have many options to get the loan on time. Make sure they are ready to help you, not just force you to take the loan.
9. Check All The Amenities
Amenities are important if you wish to live a happy life in that building. Amenities like:
- Free WiFi
- Water supply
- Kids park
- Common room
All these are required to live a comfortable life. Make sure you have all of those. Ask the developer, are they charging extra for those amenities. Most developers will include those prices in the final price. Ask them. You might get a concession if you can negotiate well.
10. Verify All The Documents and Buy It
If you want to stay out of legal trouble, check all the documents with a certified lawyer. In-house buying, there are more than 20 documents you must check before making the final payment. One single mistake can make your life like hell.
Double check all the documents if you didn’t any problems. Discuss it with the developer, force them to help you solve those, or give a discount. Property documents are the most important thing. Check them well.
Investing is fun if you know what you are doing. Use these ten best tips as a first time home buyer. Go and buy your first house and make the most profit from it. I hope you liked the article. Thanks for reading.
How to buy a house as a new buyer?
Treat it like an investment and do the due diligence so that you can see the hidden details also that most developers hide.
What is the first-time home buyer program?
The first-time home buyer program is a help from the government to help people buy their first home using government-approved mortgages.
Can I get a tax break for buying a house?
Yes, your taxable income will be lower as you have to pay interest on the mortgage (terms and conditions applied).
How to find a good house to buy?
As a beginner, you should buy your first property near your home as you know the area well, and you should take advantage of it.
What to check before buying a house?
Check all the amenities like wi-fi, car parking, gym, water supply, electricity, free repairs, pool, kids park, and common room.