For anyone, buying a home or even a property for investment purchases will far outweigh any other purchase you ever make in your life. It is definitely the most expensive thing you will ever buy, and even cost you each month due to hefty mortgage payments or property costings. However, we all need a place to call home, and so this is why it can be one of the best things you do to take a step onto the property ladder as soon as you can afford to do so. It helps you get to your later in years life without having any debt and owning your home, and it can also help you towards retirements plans if you invest wisely. But, there are plenty of interesting factors and choices to make to throughout your homeownership. Whether you have picked the right property for your family, whether you can make any more dollars from your home, or simply building up a property portfolio. With that in mind here are the top considerations for every savvy homeowner.
Buying your first home
At some point, many of us would love to be in a position where we can finally buy our first home. It may not happen to be the first home you have managed, thanks to cheaper rental properties offering affordable homes. But there is nothing quite like stepping through the door of a property that is actually yours. One you can decorate in any way you see fit, extend it, modernize it, and simply do whatever you want in it. Getting to this stage is not easy and requires a big dedication towards saving up a deposit. You also have to be mindful that sometimes some properties may have complicated repairs such as chimney rebuilds and repairs, cracked walls and foundation issues. Properties are not cheap to buy, and even some of the most up and coming areas, you can still struggle to afford exactly the amount of space you need. As a first property, it is always advisable to stick with a small property that you can add some value to. Something that will always be an in-demand property. Normally, property prices rise over time anyway so it could just be your first stepping stone to help you raise more funds for the next step on your property ownership journey.
Choosing a property to renovate
Perhaps you enjoy modernizing homes or have skills that you can put to good use, then a renovation project could be the ideal property choice for you. Often a renovation can vary on the scale. You may just need to bring a property back into the 21st century. This may require a new kitchen or bathroom, perhaps new flooring or windows throughout to make it more energy efficient. You may want to look at a property that needs more work, perhaps adding extensions or increasing the number of bedrooms. Taking advantage of any loft space or basement. You could even go to the complete opposite end of the scale and buy a run down home that needs restoring to its former glory. Something that may need rebuilding in parts from the floor upwards, or even buildings that are of special interest. Depending on your experience and, of course, funds, a renovation project can be a real lucrative option to consider. But it is always advisable to extensive research before jumping into such a commitment.
What about a property portfolio?
Maybe you have the means to buy more than one property, or perhaps a block of apartments that are occupied. This is when not only do you make money from the building itself over time with your investment, but it can also provide a very handsome monthly income from rent. However, you do need to manage the upkeep of these properties and ensure that they are renovated to a high standard. However, you don’t need to look at a block full of apartments to start with a property portfolio. You could simply buy another property as and when you can afford to, ensure that it in good condition, and then rent out. Allowing that rent to take care of any mortgage payment.
Do you size up or size down?
Sometimes people are left with one question. To size up on their home, or to downsize. Which one to do will always depend on exactly what stage in your life you are at. Some people who choose to downsize may be around the retirement age. This enables them to buy a property potentially outright, or release some equity that can then go on to fund their retirement and plans. Sizing up generally means because you need more living space. That could be down to adding to your family or just wanting your home to grow as your family grows and needs more space.
Other factors to consider
It isn’t just about choosing a property there are sometimes other factors to consider. You might want to think about the area you live in, or whether or not it is close to good schools for children to attend. You might want to think about your commute to work and even what the weather can be like in winter. Is it an area that is prone to snow? Could you still get out and about from your property in harsh weather conditions? All of which are important when choosing the right property to buy.
How do you fund property?
Funding is one question people are never 100% sure on when they are buying for the first time. What is a mortgage? How does it work? It’s always a good idea to do some extensive research online on websites about mortgages and finances to ensure you know exactly what you are getting yourself into.
The long term goal
Finally, when it comes to property, it’s always advisable to have your long term goal in the back of your mind. Is the property going to be your forever home? Is it a place you plan to add value to and then move on? Knowing what you want from your next purchase enables you to make a better and more informed decision.
Let’s hope this helps you when you are making your next step into the real estate world.