If you are willing to buy a new home, and if this is your first time buying, it’s important to consider what and how much you are willing to spend on a property. Affordability matters when you are looking for a new home, but for that you may need to know where to start. Looking at your own finances will help you figure out what you can afford to buy, what monthly mortgage payment you can pay each month and so many such things.
Through this blog you will get to know how to how to set a budget for buying your first home,
How big is your deposit?
First consider how big your deposit is, Bigger the deposit, the more options you will have when it comes to choosing a property.
Figure out the monthly cost of home ownership
There are a ton of other costs and considerations along with the mortgage payment. You need to consider all these costs and where they fit into your future budget because the last thing you want is to buy your dream home.
This is one of the important thing to consider and it can catch you off guard if you aren’t prepared for it. As Property taxes vary depending on where you live you will want to do research. Calculate the tax amount and decide whether to continue to purchase at that particular place or not.
Energy and Heating bills
It’s probably no surprise to learn that a house usually costs more to heat and power than an apartment. The cost is quite tricky to calculate but you may calculate the cost by asking the utility companies which are around the house. If you’re the outgoing type, you could also just ask someone in the neighbourhood how much they spend on heating and energy.
A thumb rule while purchasing a house is to set aside one percent of the value or purchase price of your home for potential repair costs. Home repair greatly depending on age and location, so if you’re buying an old home or a fixer-upper, you’ll want to prepare for a bigger spend.
Choose a property you can handle
When considering the affordability of a home, first-time buyers need to consider the condition and size of the property. The area in which it is located, the accessibility of other places from your location, and many such things. Also look at utility bills for the properties you’re considering—and have a construction expert estimate what fixing it up could cost. If you’re planning to do it mostly yourself, be realistic about what you can handle, both in terms of skill sets and time.
It’s always a good idea to consult a real estate expert when buying a home. We at Anshul Group are the top real estate agents in Pune, so next time when you plan to buy your dream home call us for detailed information, We are always happy to help you.