Handy Tips for FHBs
Peter Boehm writes a two-part article for the website Property Update wherein he talks about 10 tips to help the First Home Buyer fraternity. Though divided into parts, each part can definitely stand on its own. Let us discuss the first 5 tips that have come our way, thanks to Boehm.
Handy tips for FHBs
The question of affordability and the mad rush in the property market has made it ineffably hard for first home buyers.
Tip 1# Education, above all
The first tip Boehm offers is ‘education’. The fate of FHBs won’t improve unless they circumvent the first barrier which comes in the form of ignorance. There is just so much to be learned. I choose 5 bulleted points amongst the many Boehm offers:
- The know-how to deal with all the professionals; buyer’s agent, seller’s agent, solicitor, conveyancer, among others.
- The ability to manage a mortgage.
- The knowledge of conducting property inspections.
- Insight of the dynamics of the property market.
- Ability to select good properties from even better ones based on size and location.
Tip 2# Look for Advice (it does not make you small)
Good advice can be helpful irrespective of the stage of property transaction you are at. You may be in the process of becoming a homeowner, already a homeowner or just dreaming about being one. Recommendations from those who know the game can help. Yes, it is important not to be goaded down by the opinions of those who may have a vested interest in your decision.
Tip 3# Don’t stretch too much on budget
The human species, when it finds the pathway to its dreams, sometimes does not care about the finance involved in attaining it. This can go well in emotional pursuits, but lo and behold! Overcapitalising is bound to backfire when it comes to buying properties. The problems may begin with difficulties in managing the mortgage and end up in your fetching a poor profit margin during resale.
Tip 4# Start saving today
FHBs already have several more disadvantages than they can cope with. The least they can do for themselves is to start saving pretty early in the day. And because savings can give you returns on the compound interest principle, the longer you save the better for you. So if you have a home in mind when you turn 30, you could start working towards the project once you have celebrated your 20th birthday.
Tip 5# Make Sacrifices
No dream is fulfilled without extracting its fair share of sacrifices from us. For aspiring FHBs, it may start with something as trivial as missing a weekend movie and work up towards something as substantial as foregoing a vacation, all for the good cause of fulfilling your first home dream.
You can read the original article here.
The more you save, the more you can put up upfront. Not only does it minimise your mortgage pressure (a great help to FHBs), it also lets you negotiate much better with lending institutions. Already, there are schemes in place which encourage FHBs to save money (government adding to their savings by putting a fraction of what they save). But the road is difficult and only your discipline and hunger for knowledge can help you get there.