Purchasing your first home is surely a milestone to celebrate. However, it is also one of the biggest expenses you will ever have to deal with. Therefore, there is no room for mistake: choosing the perfect property for your needs and wants is the utmost priority. Here are a few tips on how to pick your property.
Consider your finances
As we said, purchasing a property is a major expense. So, above all, you need to set your finances straight, create a budget and determine what you can actually afford. Getting pre-approved for a loan is a crucial step as it will let you know how much exactly you can spend. If your credit score is not the best, it might be a good idea to improve it before seeking out a loan to get the best possible conditions.
The location is important
You might have already heard the phrase that in real estate, it’s all about the location. This principle applies in your case too. The safety of the neighborhood, the availability of amenities, the community attributes, the proximity of your workplace or your children’s schools are all things to factor in. If you have the capacities, going for a fixer-upper in a good neighborhood is a better option than settling for a subpar location.
The type of property
Obviously, you also need to consider what type of property would best fit your needs and lifestyle. When talking about home types, we can generally name 4 categories, each of which has its own advantages and disadvantages. However, what might be a disadvantage for one person could be an advantage for another. Therefore, consider your options carefully.
Pros and cons of houses
Single-family houses are a popular choice for those families who value privacy and autonomy when it comes to their property. These are some of the biggest advantages of single-family houses. These properties also have an outdoor space most of the time, which makes them ideal for families with children or pets.
However, what this also means is that single-family homes are the most time-consuming and expensive to maintain. Having autonomy over your property means you will have to pay for every single repair and renovation. In addition, you are not always entirely free in your choices when it comes to construction and modification; be sure to check whether the property you are looking at is under a Home Owners’ Association and what their rules are.
Pros and cons of apartments
At the other end of the spectrum, we have apartments that are usually rented out to tenants. This would mean that you don’t actually buy the property, nor do you have permission to modify it to your liking. Any changes you want to make must be discussed with your landlord, and they might also restrict certain activities within the property. The privacy level is also on the lower side, considering you’re sharing a building with others.
These are the drawbacks of renting an apartment, however, there are also upsides to this living arrangement. It’s the cheapest option in the short term, so if you are not entirely confident about making such a major investment as purchasing a property, this is the right choice for you. Another huge advantage of apartment living is that much of the time, the maintenance responsibilities fall on your landlord. You might also have access to shared amenities such as gyms or pools.
Pros and cons of condos
Condominiums are somewhat of a middle ground between the previous options. Buying a condo is a more affordable option than buying a house, but it still gives you higher autonomy than renting an apartment. When buying a condo, you automatically join the condo association. You gain ownership of the “inside walls,” but all of the maintenance of the shared spaces and the outside structure of the building is taken care of by the association. A similar concept in Australia is called the “strata scheme”. Crucial strata management tasks are often outsourced to companies, meaning you don’t have to worry about maintenance.
This is a big upside to condo living, which makes it ideal for people who are busy or travel a lot and don’t have time for the amount of maintenance a house requires. However, some of the downsides of condos are similar to those of apartments. You don’t get the same level of privacy as a house gives you and you have to share some spaces. The condo association might also limit what you can and cannot do to your property.
Pros and cons of townhouses
Finally, we must mention townhouses. They often provide some outdoor space, which makes them a great choice for people with pets. The maintenance required is not as overwhelming as with houses, given the smaller exterior, but you are still the one responsible for all the repairs, which can become a problem if the structure itself is older. Still, townhouses are a great in-between option.
What you need to keep in mind here, too, is that Home Owners’ Association rules may still apply; You might not be free to paint your exterior to whatever color you choose, for example. The privacy they provide is moderate since some of the walls are shared with neighbors.
Buying a property is a big deal. There is a lot of forethought that needs to go into this decision and you need to thoroughly inform yourself about all your options. Consider your lifestyle and how much time and money you can devote to maintenance, and the suitable option will be clear.
