Buying a new home is probably one of the most exciting events in our life as a first-time homebuyer, aside from your graduation day, marriage, and born of the first child. I can’t speak for you, but it certainly is for me. I’m writing this article specifically for the first-time homebuyer with little to no experience or sufficient knowledge on the property market to make a sensible decision. If this sounds like you, I hope you will learn something from this article when you are done reading.
Knowing your budget as a first-time homebuyer
What is your budget? The first question to ask yourself before splurging on a high-value purchase.
An excellent guide to follow is to have a list of commitments, current income, and disposable income every month. Besides, knowing your risk appetite will allow you to stretch a little bit more for a higher price purchase or shrink your budget to avoid unnecessary financial burden.
Often, these questions will be asked by me before any property consultation.
- How long have you been working at your present company?
- What percentage of yearly increment do you receive throughout employment?
- Do you foresee any upcoming commitment?
- Do you anticipate any changes to your lifestyle in the next six months?
- Will your family be supporting your property purchase?
Each answer carries 20% out of 100%. Based on your risk appetite, you can better manage your final budget from the percentage derived from the final result—a simple, yet practical guide for any first-time homebuyer.
Finding your ideal property
My favourite 5 points checklist to help you find your ideal property would always be in this order location, content, developer, accessibility, and package.
Everyone has different priorities. Ask yourself whether you’re buying for own stay or investment before defining your priorities. Ultimately, the location should always start first. A property that has pleasant surrounding and excellent track record in rental yields and appreciation rate is much favourable compared to a property located in an undesirable area. However, it is best to reorder these 5 points to help in your evaluation on any purchases, either as a first-time homebuyer or experienced homebuyer. Remember, everyone has different priorities.
Shortlisting your ideal property
The rule of thumb is always to have various alternatives for comparison. Keep in mind that there’s no best or 100% perfect unit. The idea is to choose one that matches your ideal property the most.
Placing a booking and seeking financing
Time is ticking, and it is ticking fast. It is crucial to place a booking as soon as you have your eyes locked on a unit while seeking financing. Many people that I’ve met, especially first-time homebuyers, found their ideal property but unfortunately was too late to place a booking. If this sounds like you, then it is time to change your approach to purchasing a property. Search for a reliable agent that is eager to help you on your purchases so that you won’t lose your dream home to someone else.
Sealing the deal
Two of the hardest days throughout a property-purchase process falls under the booking and signing of agreements (Letter of Offer, SPA, Loan Agreement, MOT). But let’s be real, there’s always light at the end of the tunnel. Besides being the hardest, this will also be the most enjoyable journey of your life when you have your priorities set right and budget in place.
I hope you enjoyed reading one of my many creations. My job as a property consultant is to provide an enjoyable experience for all property seekers. Whether you’re a first-time homebuyer or someone with existing portfolios, I am always at your service.