Home buying decisions are considered to be a big decision for everyone. A good majority of housing market buyers are either couples or individuals looking for a home. But if you are a single parent, you have to be more specific about the choice you make. You have to take care of your family and also consider savings for the down payments. Some useful tips can save you from making any wrong home buying decision. In this article, you will come across similar tips that can help you to make the whole home buying process a lot easy.
1) Buy a property that is in a suburb:
There is one common problem that every property buyer faces and that is not being able to buy a home in the local real estate market. Yet when we think about the reason as to why people buy property, the answer will be to get financial security. In case if you aren’t able to buy a property in your local market, then it’s preferable to change the state, suburbs and buy a property that is smaller. You can consider a property that is outside a major city and in a regional area. Usually, such properties are half the price. Always remember while buying a property that asset like a house provides long-term security.
2) Do proper negotiation
Just don’t let the real estate agents fool you with the high advertised price. A proper negotiation should be done that is seemingly practical for both buyer and seller. The best thing is to do preliminary research about the property. Your research will help you to estimate the right amount for the property that you are planning to buy. Also take note of the amount of money you are going to pay your mortgage loan. You can use a mortgage loan payment calculator and see if the amount reaches your monthly budget.
There are many websites from where you can get better idea for the property. When one of my friend (who’s a single mother) was looking for 2 bhk flats in Jaipur location, she analyzed a lot both offline and online. And that’s what the best strategy is. Also, know that the rates that are quoted by the buyer are usually higher so, don’t hesitate to negotiate while buying a property.
3) Rent money is dead money
This is a famous saying that most of you must have heard before. The rent cycle is a never-ending one. So, the best way to make it easy is by starting with a plan by creating an estimate of the rent that you are paying. Doing so will help you analyze whether paying rents will help you is actually economical for you or not. Next step should be towards finding a right and affordable location to buy a home. Once you start planning out to move out of the cycle with a few baby steps, it will give you positive results.
4) Share property ownership
It might so happen that banks may not initially approve your finance request. This can turn out to be a bad situation for you. But here’s a hack. You can share property ownerships. Find someone who is also looking to purchase a house just like you. Doing so will automatically increase the loan serviceability and also help to get your finance across the line. You can buy a property with a person, family or a group of people (with similar interests). Along with a guarantor, you also get assistance in the loan application process. They give a guarantee to the bank that you will do your loan repayments from time to time.
5) Buy during a hot sale
As you must be aware that the property market moves in cycles, every cycle has a difference. In the past 60 years, property prices are seen moving upwards steadily, reaching a high point and then suddenly moving downwards. This is a repetitive cycle. Many smart buyers are seen making use of the opportunity by patiently waiting for the market to go down. This is the ideal time to buy a property as the rates are slashed down. When the prices are moving down, competition is less, property rates decrease and these properties don’t sell unless they are discounted.
Buying a home for single parents can be easy if done with proper planning and research. I hope this article helped you to know about new tips that you can imply while your house hunting. In case of any doubt, do feel free to contact us through the comment section below. Thanks and Happy house hunting 🙂