September 7, 2016

When buying a new home, don’t exceed your spending limit!

Before you set out on your search for the perfect property, know what you have to spend. Don’t get carried away in the excitement of the ‘perfect property’. If you can’t afford the property then don’t buy it. Always remember that there are additional costs which you will have to meet – stamp duty, search fees and legals.

Your first step is to determine how much cash you have to spend or if you are borrowing money, then how much you can borrow to add to your cash. Most banks have calculators on the internet which will allow you to work out how much you can borrow so this should give you a good idea of what you can actually spend.

If you have the time and you can arrange a meeting with your banker or loans officer, then always take advantage of their knowledge. They are experts in the field so take the benefit of their advice.

Don’t over commit. Buying a property will probably involve sacrifice but always remember you have to live so make the sacrifice a balanced one.

Over-borrowing could mean that once you move into your new home you will have sleepless nights worrying about how you will make the monthly loan repayments. As they say on TV – that’s not living, living is enjoying your new home and having spare cash to really enjoy life. Be balanced and always be thoughtful.

Most of us will use the services of a selling agent to find the property we really want to buy. Always keep the agent informed as to your requirements – don’t leave the agent guessing. Your likes and dislikes, your realistic requirements and your spend are matters which the agent will need to know. So, be up front with the agent – a direct approach will always lead to a shorter way to the home of your dreams.

One final point, agents are like you and I, genuine people are treated with a serious approach. Tyre Kickers are not genuine and only waste an agent’s time. Always keep the agent engaged and always treat the agent with courtesy and respect. After all, the agent probably does have the keys to your dream home.

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