Factors to Consider in Purchasing a New Home
Is your family growing? Do you want to move to a new city? Or maybe you just need more space for your home office?
Whatever your reason is, buying a new house is a big decision; it’s a special milestone for most people. With this, it only makes sense to go through some crucial factors in purchasing a new home, some of which include the following:
One of the most important things to consider is the location of the house that you are getting. If you want connectivity and convenience, it is best to live in a city where almost everything is within reach; this will save you a lot of time going around, especially if you have to be near academic institutions, establishments, and offices.
On the other hand, if you prefer a quieter setup, a house outside the metro would be advisable; this can be in less busy municipalities, modern provinces, or beach towns. Regardless, remember to select an area with stable electricity and a good signal for mobile and internet.
Another crucial point to look at is if the location rests on a fault line or is prone to flooding. While no place is a hundred percent shielded in times of calamity, there is always the option to stay somewhere safer, where damages can be minimal in case of catastrophic events. Don't skip this part. Checking possible hazards during natural disasters can help with disaster preparedness.
Once you figure out your preferred location, it’s time to think about the neighborhood you want to live in; what kind of community do you prefer? Selecting one that fits your lifestyle is important because that’s where you’re putting down your roots. The physical environment will also affect your quality of life and influence how your kids grow up. This factor should be a primary consideration if the house you are purchasing is a long-term home or a “forever home”.
When canvassing for neighborhoods, you can inquire about the following: amenities, yearly social events, recreational facilities, nearby churches, and nearby hospitals.
Please take note that we have different ways of defining a good neighborhood. Examples of how others see it can be having a prestigious address, dwelling somewhere close to commercial establishments, or simply being in a kid-friendly environment that is safe and secure.
3. Number of Occupants/ Size of Property
This one is straightforward. If you have a big family, you will most likely need a larger property to accommodate everyone. If you’re a starting couple getting your starter home, a modest space will do while you work for your dream home.
If you’re planning to construct in-property amenities in the future (like a gym or a pool), it would be good to take note of those things so you can determine how much space you would need.
Now, this is a major determining factor. Even if you already know what kind of house you want to buy (and where), there is still the question of affordability. Can you afford the type of home that you’d like to purchase? If not, you’ll have to be flexible with your options.
Understanding how much you can shell out is of utmost importance. You do not want to get too excited about buying your dream house only to realize that it's beyond your budget. Have some alternatives ready and check interest rates as well.
Apart from the house price, you should also consider taxes, construction fees, repair fees, workers' wages, and other transaction costs.
5. Income Security
Concerning the budget, another thing to consider is your income security. Do you have a stable job? Is your business generating enough income? Depending on where you plan to live, you may or may not have monthly association dues on top of regular maintenance expenses.
It’s best to go through your sources of income first, assess your cash flow, and calculate your savings before buying a house. That way, you eliminate worries in the future.
6. Potential for Income Generation
Your plans of staying in the same house may change over time, and when that day comes, it would be great if you could make money by leasing the place or selling it to another buyer. You can earn a lot, especially if it's in a prime location where the price appreciates faster in value.
It doesn't hurt to ask your realtor for property comparables or see if you can find any information about upcoming developments, they may come in handy later on.
Purchasing a new home is both a financial and emotional decision. Take the time to go through these factors (and the rest you have in mind) to avoid issues in the future.