If you are keen to put down roots but you are used to being a seasoned renter, you might not know where to begin when it comes to home ownership. The thought of buying a piece of real estate and taking out the largest loan of your life to afford it can be terrifying but it can also give you the chance to build up equity and have your own little patch of bricks and mortar. Home ownership is still a luxury for many. However, if you have the cash saved up, you no longer want to move from rental pad to rental pad, and you’d rather not throw money at a faceless landlord, you need to read this guide to help you go from renter to homeowner the easy way:
The most important part of buying a house is making sure that you have your finances in order. It’s all too easy to go house hunting without sorting out your home loan and property lawyer first. To make life easy for yourself, begin saving your hard-earned cash as soon as you have an inkling that you want to buy. Don’t venture into your overdraft for at least three months prior to putting an offer in on a house and demonstrate to home loan lenders that you are a responsible borrower. This means paying off the full balance of your credit card each month and not being flash with the cash, paying out for big-ticket items like new cars or luxury holidays. Be frugal and you could find more favorable home loan interest rates available to you.
When you are renting, it can be difficult to get your lease end date and your moving date into your new pad merging together perfectly. While the second-best option would be to collect the keys to your new dwelling prior to your lease ending so you can move your items from one place to another, it doesn’t always work out like that. If you need to move out of your rented home before completing your property purchase, you may need to look into storage units to house your furniture, heirlooms, and items for a short while before you can eventually start setting up house. While timelines can get a little muddled, don’t allow your logistics to get in the way of signing for your home.
If you know the area that you want to move to, it still always pays to do some research. If you’re looking to outperform the market and you don’t mind having a go at some home renovations, it can pay to buy the worst house on the best street. If you are wanting to buy in a well-established and highly desirable area but don’t have the budget, this can be the ideal way to get your foot on the property ladder. Hold some cash back from your deposit and change up the kitchen, put some more modern decor into your new living spaces, and give your garden an overhaul. Doing this will increase the value of your first home and leave you more equity in your bricks and mortar. This is key if you are looking to move again in the future.
You don’t have to rent forever. Take the plunge and you can evolve from seasoned renter to homeowner!
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