Homeownership risks:
Monthly housing expenses can increase: A monthly mortgage payment is larger than house rent. These higher monthly payments may be offset by a tax benefit (in a few instances only) at the end of the year. Talk to a tax professional to understand your particular situation.
You become your own landlord: If an appliance breaks, you will have to pay for its repair or replacement. You are also responsible for the maintenance and upkeep of your home and your property. The fact of the matter is, you can expect to budget for monthly repairs on your home. Again, this increases you monthly outgoings.
You might want to sell your house before you move: Depending on the local real estate market, you might not be able to sell your home quickly. You should also factor in the likely expense of hiring a real estate professional. Fees can be negotiated and vary according to agent.
Property values can depreciate: You can lose value in your home for a number of reasons, such as a recession, the condition of your home not being kept up, or a drop in a neighbourhood’s home values. If your home loses value and you have to sell it for less than you owe, you will be required to repay the full mortgage.
Mortgages
Mortgage represents a loan on a property/house that has to be paid over a specified period of time. Think of it as your personal guarantee that you’ll repay the money you’ve borrowed to buy your home. Mortgages come in many different shapes and sizes, each with its own advantage and disadvantages.
Make sure you select the mortgage that is right for you, your future plans, and your fi nancial picture.
Choosing a mortgage company
Once you decide on the mortgage you want, do your homework. Different lenders offer different rates, points, and fees. This means that you should shop around and see which lenders are currently running special offers or incentives.
Buying your new home (considerations):
Looking for a new home is a time-consuming process and it is tempting just to rush into buying the first one you take a look at. But watch out, as it will not be so easy to take back to the shop if you decide you don’t like it after you have moved in. Once you have decided to buy a house and found out how much you can afford, it is worth sitting down and thinking hard about what you want from your new home and what your needs are. We have made a list of some of the things you should consider when househunting.
Location:
It is important to research an area before viewing homes there, or making an offer on a house there. If you decide it is not the kind of neighbourhood you would enjoy living in, then save yourself a lot of time and effort by not hunting in the area.
Even if you can get a bigger home for your money in an area which isn’t so nice, make sure you really are doing the right thing.
You can always make changes to a house but not to the neighbourhood.
What is the neighbourhood like? Is it the kind of place you can imagine yourself feeling comfortable in? Who lives there?
What kind of amenities are there locally? Check out the leisure facilities, activities for kids, shops, public transport and so on.
What is the crime rate in the neighbourhood?
What kind of condition are the other houses in on your street? If they are in a state of disrepair, or look as if they are falling into one, it could bring down the value of your property.
Simply touring the area can give you a good idea of what it is like.
Documents and Proof of ownership:
Make sure you involve someone working in the line of legal services, like a lawyer, and make sure that all the documents are confirmed, deal with a reputable estate agent, if you are wary about an estate agent, you can join our Forums and Ask a Question sections to ask about the credibility of such estate agent and find out if he and his office truly exist,who he has worked for and testimonials about transactions he has succesfully completed. Always ask questions, you can never ask too many questions in the home buying process as there are a lot of dubious and unscrupulous people who are out to swindle innocent people for their hard earned money.
Type Of Home
Do you want a new or an old house? If you are buying a very old house get a civil enegineer to examine the physical state of the house.
Some old houses can look lovely but cost a lot to keep up in terms of maintenance bills, but most old houses are to archaic to live in, so most home buyers demolish to rebuild, for more info on demolishing to build a new house.
Newly-built homes can also have drawbacks, such as higher prices than ‘secondhand’ ones, and the requirement to buy before they are fully built, but advantages include less maintenance and decoration costs, and often complimentary extras thrown in by the builders such as fitted kitchens (though you will not necessarily get to choose your own decorations).
Do you want a stand alone home, semi-detached or complex home, or a flat? If you want a flat, do you want a purpose-built one or a conversion? All have their advantages and disadvantages: consider safety, security, space, privacy, noise, parking and character. How much does each one matter to you?
How much decorating or improvement do you wish to make to a property?
Kind Of Home
Key Tips: Once you have found a property you feel you like, make sure you learn as much as possible about it.Even if it seems perfect at first glance, try to think about it from all angles. And write everything down
The best home-hunters take notes on each property they view which they can compare later.
Make at least 2 visits. View the house in the daylight and at night. Go around at rush hour, as you could get a nasty surprise.
Is the road used as a short-cut by motorists?
General Condition
Check what fixtures and fittings left by the previous owner.
Consider the layout of the house: are there any unusual shaped rooms that it would be difficult to fit furniture or appliances into? Are there are enough power outlets?
Don’t be put off by the seller’s choice of décor, try to imagine the house with your own furniture and style.
State of Repair
Plumbing: Are the pipes and the taps lagged? How old is the piping? Lead piping will need replacing.
Plug sockets: How old are they? What is their state of disrepair?
Structural Problems (Inside):
Look out for cracks in ceilings and walls, doors that stick or don’t hang correctly or as mentioned earlier, invite an engineer to examine the structural state of the house.
Damp: You can smell damp, so use your nose. Mould, walls which are damp to the touch, flaking paintwork which is peeling off are also signs of damp. Be wary of new paint which could be hiding problems underneath
Condensation problems: rotting window frames can be a sign of this. If they are very soft to the touch this means they are rotten. Make sure the bathrooms and kitchen are well ventilated
Structural Problems(Outside):
Subsidence: look for big cracks on the walls, gates, garage doors or an uneven roofline, be sure to ask about the condition of the roof.
Damp: examine for missing roof tiles, and check the brickwork and mortar as cracks can let in damp.
Root damage to foundations: if there are any big trees nearby this could cause problems.
NB: Inspecting the property yourself does NOT avoid the need for a professional survey, www.propertiesng.com does not guarantee the information and guide provided on this website, so please seek professional advice, our aim on the site is to give you a brief understanding on homeownership, buying, selling and renting processes. www.propertiesng.com is not liable for any misinformation gotten from this website.
Please note, that guides and advices have been culled from various sources and are subject to change, www.propertiesng.com is not liable for the information you get from this website as it is subject to verification from a professional. Be aware of scams, there are a lot of unscrupulous people out there who pose to be Estate Agents, but are just out to swindle innocent people of their hard earned money, kindly deal with someone that offers legal services and advice like a lawyer when dealing with any Estate Agent, you can also check out our Forums and Ask a Question sections, where you can ask questions about any real estate agent and be sure of its existence and credibilty.
