Tips for first-time buyers

Purchasing your very first home is one of life’s greatest milestones. After years of saving and cutting costs, it can be a dream come true for tenants living in rented accommodation. But with so much at stake, it can be tempting to let the excitement take over. Continue reading to find out what you should know before you are handed the keys to your forever home.

Do your research

Before you begin the search for your forever home, you must do your research. By investigating local housing market trends and predictions, you can make an informed decision as to where you want to live as well as how much you are willing to spend. You must research local estate agents as well as those located further afield in the search for your first home. An estate agent with sufficient knowledge and experience of the local area will be able to negotiate with sellers and recommend residential areas based on their proximity to a number of local facilitates and amenities.

Decide your budget

Before you begin the search for your first home, you must agree on how much you are willing to spend. By capping your budget, you reduce the chances of accidentally overspending on housing or estate agent fees or being wooed by a house that is simply out of your price range. A CIMB Home Loan may be able to offer financial support for prospective homeowners looking to take their first step onto the property ladder. Most first-time buyers also require a deposit in the range of 5% to 25%. This depends on several different factors including the asking price of the property and the lump sum you are prepared to pay upfront. A higher deposit equals lower monthly payments and cheaper mortgage interest rates whereas a lower deposit equals greater monthly payments and higher mortgage interest rates. A longer mortgage term, however, can significantly reduce your monthly repayments.

Know what help is available

There are several homeownership schemes and incentives available for first-time buyers. Depending on where you live, the government may be able to boost your savings by contributing to your first home fund. This can increase overall homeownership rates and allow those on lower incomes to purchase their first home in less time and for a fraction of the price. Loans can help you achieve the milestone of owning your own home quicker than ever before and save you thousands in the process. It is important you thoroughly investigate each type of loan available to first-time buyers before making an informed decision.

Know what you want

Before you embark on the process of searching for your first home, you must have a clear idea of what you want. Knowing you want to buy a house is simply not enough. Are you looking for a semi-detached house or an apartment? An HDB or a condominium? These are just a few of the questions you must ask yourself before you begin scouring property websites. Start by setting clear, realistic goals with clearly defined deadlines. This breaks down the moving process into small, manageable chunks and prevents you from becoming overwhelmed. If you plan to purchase your first home with a partner or significant other, it is important you both share the same goals and ideals for what may well be your forever home. This can streamline the entire moving process and reduces the chances of any disagreements or disputes during what is an already stressful time.

Know what area you want

As well as knowing what you want, you must also know where you want to move. Location is a key factor during the selection process. It can be the difference between a happy home life and a not so happy one. You must consider nearby amenities, local transport links and proximity to family and friends. It may also benefit you to investigate local crime rates and statistics, employment opportunities and health care facilities within walking distance. By taking all of this into account, you should be able to shortlist a number of areas or districts that you would be happy to call home. An estate agent would be able to assist with your property search or recommend neighbourhoods similar to those you have chosen. Finally, it may also be worth settling down in an area popular with first-time buyers as it is more likely to offer affordable homes with excellent transport links and a short commute to the city centre.

Purchasing your first home is a huge financial commitment. It can be difficult to know where to start when it comes to taking that first step onto the property ladder. By following these tips, you can be sure to make the right decision and find a house that will make you happy for years to come.