When you’re buying your first home, you’re taking your first step on the property ladder which can set up your wealth for life. It makes sense, therefore, to think strategically to maximize the value of your investment.
As a first home buyer, you should begin with the end in mind – that is, consider your financial goals and how owning property will contribute to your wealth.
Your first property purchase will have far greater significance than simply allowing you to escape the rental race, or to finally stop living with your parents.
But don’t buy on emotion. Instead, create and apply your financial plan to your first property investment. A successful first purchase can substantially add to your lifetime’s wealth.
Research and advice are essential in making the right decision. As your real estate agent, I’d be happy to provide you with some insights on local neighborhoods that are high growth.
Independent data sources can also help you understand where to invest and the type of property, such as a condominium or house that is in demand. Investigate the local market to see what’s hot on the rental market as this can often provide a clue.
Remember, if you view your decision as an investor, then you don’t have to be completely in love with this first property. It’s not going to be your forever-home – it’s just your first step on the property ladder.
Another important factor for first home buyers is to maximize the available financial instruments, such as any government grants or schemes that encourage folks into the housing market. It’s always a good idea to seek professional financial advice and get help from a mortgage broker too.
Here are the key considerations for a first-time buyer:
- Think strategically – how will this purchase help you meet your longer term financial goals?
- Seek out high growth areas – these will provide the best financial results for you.
- Research the style of property that is in highest demand in your chosen neighborhoods.
- Leverage all financial instruments to accelerate your entry into the market.
- Ensure you stay within your budget; and
- Remember, let your head – not your heart – make the decisions.
Article From ActivePipe
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