5 Essential Home Buying Tips for Millennials
Buying a home can be a lot more stressful than you think. It’s not just about finding the right house; it’s about making sure that when you buy it is the right time to invest in housing. And there are definitely some things you should know before buying your first home. We've rounded up some of our favorite tips for millennials who want to take advantage of the current real estate boom:
1. Get a home inspection
Home inspections are an important part of the process. You don't want to get stuck with a house that needs repairs after you've already purchased it, so it's best to know what you're getting into before making any big financial decisions. A home inspection will tell you about the structural integrity of your house and whether or not it's safe for occupancy. As a renowned developer in Kolkata, we always suggest our patrons to conduct a home inspection before investing. We understand that home buying is a big decision and you need to be confidant about what you are buying.
2. Start with a 15-year mortgage:
Millennials are known for their love of time-management and technology, but they may have a hard time keeping track of their monthly mortgage payments. If you're a first-time homebuyer who wants to pay off your house quickly, then it's best to start with a 15-year mortgage. This type of loan allows for lower monthly payments because it won't require any money down (or at least less than 20%). However, you'll have more interest taken out each year, which means that after 15 years—and assuming no other changes in your financial situation—you'll be paying off nearly double the amount you took as loan. Still, it is a wiser option as your income will grow eventually and your monthly expenses will not be hugely affected after a point of time.
3. Pay off debt before you apply for a loan:
Paying off debt is a great way to save money and avoid getting into more trouble in the future. But it's not always easy, especially if you have a lot of debt to pay off.
- Make a plan and stick with it: You should know exactly how much money will be going towards paying down your debts each month, so that you can budget appropriately. Keep track of all expenses and income so that you don’t overspend in a month.
- Figure out what kind of loan works best for your situation: Do some research on different types of loans before applying for one—you may find one that fits better than others based on how much cash flow you have right now.
4. Build credit
One of the most important things you can do to get credit is build a strong credit history. This means making on-time payments and paying down debt at the earliest. Start with secured credit cards that offer lower interest rates than traditional unsecured ones and don’t require collateral like an auto loan does. Pay your bills in full each month, which means setting up automatic bill payments if possible so that it doesn’t fall through the cracks until after they've been paid!
5. Expect to pay more than the asking price
While it’s true that you can find homes for less than their listed price, most buyers pay more. In fact, the average homebuyer pays 20% above the asking price in today’s market.
The reason for this trend is simple: sellers want to get rid of their homes and they know they can make more money selling immediately than they can wait around for another buyer to come along. So, while you may be able to negotiate a lower price with your real estate agent or seller representative (who will likely benefit from having an eager buyer at his or her door), it’s best if you don't expect your seller's agent or seller's representative will negotiate any further than what is listed on his or her own real estate website.
Homes are still an excellent investment, but you need to be smart about how you go about buying one. If you don't have a long-term plan in place, your money could evaporate before you call it your own. The ongoing real estate projects in Kolkata developed by Primarc , are aimed at providing a happy and stress free life to our patrons.