Being a seasoned renter can help you remain free from the shackles of being tied down to a property or a place. You can take out a lease for a short length of time and then slip onto a rolling contract, only ever having to give a month’s notice to inform your landlord that the time has come to move onto pastures new. Being a renter means that you don’t have to worry about a mortgage, you can move properties alongside your mobile job and you always have your pick of swanky pads. By renting you may even get a better standard of dwelling than if you bought.
However, there may come a time when the sudden pang of realization hits. You have been spending your years lining the pockets of some faceless landlord while not accruing any asset of your own. This can leave you feeling forlorn at the amount of money you have frittered away. Don’t be disheartened. Your foray into the world of renting will have enabled you to experience different property types, locations, and budgetary requirements. This can empower your first property hunt if you are tempted to find your own little patch of bricks and mortar.
Forget about worrying about throwing good money after bad, and think about finding your own asset to invest in. Yes, this means getting a mortgage and putting down roots, but this can give you a sense of stability that you may be lacking. Take a look at how you can transition from renter to buyer in three simple steps.
It is important that you get all of your financial ducks in a row before you even consider looking around properties. You will need a mortgage so you need to investigate home loans and the rates that are accessible to you. The larger deposit you have, the more preferential the rate you can achieve. If you have a deposit of 25%, your loan to value ratio will be 75% meaning that the percentage interest that you pay back will be less than if you only had a 10% deposit. As a responsible borrower, you need to show off your financial credentials. The mortgages available to you will vary depending on the provider that you choose. There are many buyer financing options to consider from a traditional home loan to chattel loans that can help if you are looking to purchase a non-conventional pad.
Consider saving up as much as possible and clearing any debts that you have. If you have credit cards, pay back more than the minimum repayment each month and make sure that you pay on time every month. If you don’t, you can see a dip in your credit score which will ring alarm bells for any mortgage company lending your thousands of dollars. Not all credit is bad but you need to show that you can manage yours effectively.
When saving for your deposit, make sure that you create a personal budget and list all of your outgoings. Any luxuries that you partake in like that latte with an extra caramel shot on a Friday morning on the way to work can be scrapped and you can place any money that you recoup into savings towards your deposit. It can be tricky to save quickly, so you may need a few months of sorting out your finances before you think about heading out there to view properties.
When you are venturing to homes to look around, make sure your head rules your heart. Just because the pad you are looking at has the sofa you love and has some swanky looking lighting, remember that these items will not be staying. You are being seduced by a potential lifestyle. This is a look that you can achieve in another home that isn’t dressed as expertly. When you view a home, make sure you ask a range of questions. Enquire as to why the sellers are leaving, what the neighborhood is like and if there are any issues with the house. Legally, a seller must answer all of your questions honestly.
You may be eager to purchase quickly, but don’t make do and go for the first pad that you see. Explore a location and check out a range of properties. Get a feel for the asking prices and explore apartments, houses, bungalows, and condos. Your lifestyle may fit a certain property. If you are keen to have a house to entertain in, go for a pad that is more open plan and spacious. If you are more concerned with configuration, opt for a property that flows. If you are keen on energy efficiency, there are plenty of homes equipped with solar panels and mini turbines to generate their own electricity.
The location of your new home will be crucial to your happiness. You don’t want to be purchasing a pad only to have to move just months later. This will be costly to your pockets. Instead, research locations that you are keen on. For a sound financial investment, make sure that you look into the property history of the region you like the look of for the past five years. If prices have continually increased, then you could be onto a safe bet. Make sure you opt for a well-established area rather than take a risk on an up and coming area. Often this is nothing more than a euphemism for a less than desirable place.
If you like being in the thick of it, you adore cafe culture and you need sound transport links, you might be more suited to inner-city living. Being in the center can lead to a more vibrant and exciting lifestyle. It will be busy but fun, and you will adore being in a diverse place. The suburbs will be cheaper but they won’t suit you, and you’ll be spending any cash you save on traveling into the center.
If you adore the peace and quiet of the countryside, forget about the city center. Instead, go for a larger property out in the sticks. You can enjoy the tranquility of your surroundings while still having a few amenities on your doorstep. It doesn’t matter which sort of location you prefer, you must check certain things. Make sure that the crime rate is low, that the area has good schools, and that there are excellent transport links so you can get to work and you aren’t cut off from friends and family.
Becoming a buyer and putting down roots can be daunting when you have been used to renting for so long. However, if you want to invest in your future and you need some stability in your life, investing in bricks and mortar could be the ideal way to secure your future financial happiness.
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