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2020 has made many of us reevaluate our lifestyles and priorities, and understand what is important to us. Most of us have spent more time at home than ever before. This has led to an increase in people thinking about moving in the near future. Perhaps they have realised their house no longer makes them happy, or is not big enough. Perhaps they just want a new start in a new home. Whatever the reason, there is forecast to be a mini housing boom in 2021.
Purchasing a property is probably one of the most important purchases you are going to make in your life. No matter how small or big your mortgage is. You are almost certainly delving into your savings for the initial purchase price, that is just the beginning. There are all kinds of other expenses that follow after selecting and buying the house. Nevertheless, there are ways to save money while you are going through the house buying process. So you may not have to say farewell to every bit of your savings just yet.
Here, we look at some cash saving hacks to make your new start a little easier on the pocket.
Look closely at your finances
Before you do anything, take a good hard look at your finances. Know how much you can acceptably afford to use as a down payment. Then use a mortgage calculator to calculate the estimated cost of your monthly payment.
Do not forget to take all aspects of your income and outgoings into consideration. As this can affect the amount of money that you are entitled to borrow significantly. Things like other forms of credit repayments and daycare costs for your children. For example, can put a dent in your income and reduce the mortgage that you are entitled to.
Of course, some people are not looking to sell their current home. The new property may be an investment, something they are hoping to make a secondary income for. Using as a second home or buy as something to pass down to their children. In that situation, if you do not have the capital to buy it outright. You could look at taking out a refinance option on your current home loan. This may give you the capital, or at least the down payment, that you require.
Choose your new property with care
Once you have an idea of how much you have to spend, start looking at any available property online. Filter the search results on the real estate listings to make sure you only see the houses you can comfortably afford. Consider your needs as well. If you have a family, you will need something big enough for all of you. But if you are single or have no children, you may not need something as big as that. Having said that, it is wise to look ahead and think about what the future might bring. The last thing you want to be doing is going through the process again in a year or two. If growing your family is on the cards.
What factors are affecting house prices?
When buying a house, there are two important factors that have an impact on pricing. The first is the area, and the second is the type of property. Looking at the area, the properties in rural areas or at the more upscale end of the town are going to see a rise in prices. If you can afford it, great, but if it’s a matter of money. You might want to choose an area that’s best suited to your budget.
However, after selecting the area in which you want to live. You will notice that certain types of property are priced differently, no matter where they are. Detached or semi-detached houses are usually at the greater end of the price scale. While apartments will generally fall at the lower end. Again, look at your budget when you’re looking for a property. Then consider both factors when choosing the right and most affordable home for you.
Can you buy a fixer-upper?
If you are on a budget but you want to buy something in a more desirable and expensive location. Consider buying something that needs a bit of work. It may not look great to start with, but as long as you are committed to putting effort in. You may find that even with renovation costs, it is cheaper than buying something oven-ready in the same area.