L ♥ I's Stories: Prepare Yourself to Buy a House Even When You Are in Your 20's

Prepare Yourself to Buy a House Even When You Are in Your 20's

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June 23, 2017

Prepare Yourself to Buy a House Even When You Are in Your 20's


For most recent college graduates, purchasing their first home may not be a financial reality or a top priority. But the benefits of homeownership should be conveyed to young people in their 20's the same manner as anyone else. Buying property in Malaysia and owning a home provides a vehicle for building equity, reducing tax liability, and investing in real estate. The following strategies can help young people in 20's successfully navigate the real estate market.

Save and Establish Your Credit History


The first step to achieving financial independence is to save a portion of your income for future needs consistently. Savings early in life can contribute to increasing the size of your down payment and reducing the monthly payments on your first mortgage. Establish your credit and maintain a favorable credit history by paying all your bills on time, every time.

Know the Budget


Perhaps the most critical point of information in searching for your fist home is what you can afford. Budgeting for your first home requires that you consider all components of home ownership such as mortgage payments, property taxes, home insurance, association fees, repairs, etc. Knowing your upper limits and prequalifying for a mortgage before you start your home search can help save you time and wasted effort.

Define Your Purpose and Identify Wants vs. Needs


Once you know your price range, the next step is to make a list of the reasons why you want to buy a home and the characteristics of the property that you would like to find. First-time homebuyers often find that they must make several compromises to stay within their budget. For example, you may not want to compromise on location, but you might be willing to forego an extra bathroom to buy a house in the neighborhood of your choice.

Research and Do Your Homework.


Today there are many online avenues for first-time homebuyers can explore to advance their search such as PropertyGuru among others. Look for information on comparable sales and for sale by owner websites to get a better feel for how the local real estate market is operating. If the property is for a potential investment, identify the characteristics which would lead to a strong return and resale value. By doing preliminary research on your own, you will be more informed and prepared when you meet with your realtor.

Choose a Realtor to Represent Your Interests


Now that you have researched the market, identified your reasons for buying a home, and the characteristics that you value in your first property, the next step is to select a realtor that is best positioned to deliver the results that you require. A good place to start your search is with friends and family, as they are most likely, to be honest, and forthcoming about their experiences. Always choose a realtor that you can trust and who works exclusively in your best interests.

Be Flexible and Open-minded


Despite all efforts to be prepared, informed, and satisfied of your search specifications, there will almost certainly be additional opportunities to exhibit flexibility and open-mindedness as you begin viewing potential properties. Keep in mind the purposes for which you want to buy a home, and determine how critical location is to this equation. Also, consider the opportunity costs involved with travel time both to work and other places of interest.

Property promotion in the form of hefty discount on the price per square feet, interiors/furnishings absolutely at no extra cost, glamorous amenities and maintenance charge waiver along with rental assurance helps properties sell like hot cakes. However there are some significant points that a buyer should know in order to zero in on a good property be it for an investment or for a living. The points mentioned below can help broaden your perspective on buying a home serving as guide for your property hunt:

The ideal home.


With enormous choices around, it could be confusing to find the right home. While individuals with small family might want go for a builder's apartment, newly married couples who have just moved out looking for a posh lifestyle with a sprawling community would opt for an integrated township. Therefore it is better to first understand the ups and downs of individual houses, townships and apartments, compare them to find out the one that caters best to your requirement.

Choice of location 

Many homebuyers pay little or no attention to the location factor. This is a significant factor that might eventually incur huge expenditure if left remiss. If the house you decide to buy is located in the outskirts of the city, it is going to cost a bomb to travel to work or school no matter how attractive it is. However if you end up in a place that is not going to fit your social need but is going to save sometime you might still regret and consider re-locating again. If the purchase is an investment, it is wise to find out the appreciation value of the locality. It would also be sensible to choose a property that is well connected by public transport.

Choosing the right developer


As much as it is important to consider the style of building, it is equally essential to check the reputation of the developer. This would ensure you are in safe hands particularly when you are buying a property with possession as the primary objective. Reputation of the developer not only reflects in their promise of sticking to the time frame while handing over possession but also in the way the building is constructed. A well-experienced developer would ensure there is enough ventilation. His choice of location would also be such that you are free from external disturbances (e.g. close to industry outlets, bad approach because of improper roads etc.). This will pay off as many developers are also known for their optimum utilization of space while raising the building.

Right Time.


While you know it is right time to buy a house, it is imperative not to be hasty. A prudent buyer will sift through all the choices, take time to weigh the options before settling in for the ideal home. Do not fall prey to superficial advertisements. It is worth investing some time doing research which is going to translate by appreciating monetarily. At the same time keep an eye on the fluctuating market. While, it is important taking enough time to assess what is suitable, it should be borne in mind that taking too long to make a decision would only leave you with very few options. If they were not interested in owning a house, they would not have walked into your open house. They would have spent their Sunday afternoon walking into a clothing store, or a furniture store, or a sporting goods store, or a car store. They walked into your open house because they are interested in a house. You need to say hello to at least one prospect every day.

 Follow Through with an Offer.


When you finally walk through house door, you feels like home, satisfies your requirements, and is within your budget, make a tender! By now you have put in the time, researched the comparable, and teamed up with a realtor ready to negotiate on your behalf. Identify what is most essential to the seller (price, closing costs, etc.) and negotiate for other concessions that generate additional value for both parties at closing.


Buying your first home is one of the major accomplishments of your life. For first time homeowners, the home buying process may seem daunting at first, especially for young people in their early twenties. However, you can position yourself for success and homeownership by following the simple strategies outlined in this article.


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2 comments:

  1. Rumah is a must have for every family

    ReplyDelete
  2. BW here. sambil2 tu nak mintak jawab survey ni >> https://goo.gl/forms/NfwOW9u92ZhNTrNf1

    Thank u in advance :)

    ReplyDelete

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