5 Rules To Know By Heart for First-Time Home Buyers

While the real estate market continues to boom, purchasing your first house can be an extreme challenge, especially amidst the high competition among buyers. Others may either have more money or more assets to liquidate than you do. In these situations, you have to create your advantage.

Here are some tips on how you can score your first house.

1. Needs, Wants, and Everything Nice

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Before making that offer for just any home, you need to identify what you’re looking for in a house. Imagine yourself in a home buying reality TV where the hosts ask you what you want, how much your budget is, and what features you would like to have in your residence; the same goes with your true-to-life house hunting.

2. Maximize Your Financial Health

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A real estate buyer needs a housing loan. However, before providers can approve yours with reasonable interest rates, you have to secure your finances.

Take care of your credit score while you’re saving up for at least a 20% downpayment. Your loans are more likely to be approved with lower annual percentage rates when you have 750 credit rating and above. Keep your debts to a minimum and pay your obligations on time.

3. Consider Alternatives

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If you can’t make a fifth of the asking price as an initial payment, or if your credit score is too low to meet the 750 mark, there are still options available. The FHA and other mortgage companies can offer loans asking for a lower down payment, which is at least 3%. Some can even provide a 1% down payment scheme for qualified borrowers.

4. Pre-approval

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Mortgage loan providers can credit scores and verify them against your assets to see whether they’ll support your loans. There are even lenders who can almost instantly approve your application for a housing loan.

Even when you receive the approval for a housing loan amount, you may still have to remember it’s not yet permanent until it has been awarded to you. Keep your credit score up before, during, and after the loan.

Also, while you may be approved for an amount, think through whether you’ll take advantage of the full loanable sum. Figure out whether you can sustain yourself throughout the life of the loan. The last thing you want to happen is becoming ‘house-poor,’ where you’ve spent all you can afford to buy your house and had little to nothing left to sustain your other needs.

5. The Buyer’s Agent

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The Internet may provide useful information when it comes to acquiring properties, but with the constant change in various markets, the critical data necessary for buying a home may be outdated.

While there is an app for almost anything imaginable, real estate buyers need human real estate agents, particularly the first timers. People require assistance in getting listings, deals, and all things to know about current market conditions, pricing and fees, financing, and housing rules.

These are just four rules to follow when buying a home. Feel free to read about getting that dream home. But most importantly, work hard for it and keep your debts to a minimum.


Top 5 World Cities Where Your $1M Can’t Afford A Big House

Most real estate agents I know tell the same quote on different occasions – that the grandest investment on Earth is earth. True enough. There are at least eight reasons why real estate investment is a must if you can afford one. If you can’t at the moment, work hard for it.

These agents would also often say, that if you don’t like your neighborhood, then move somewhere else. If thoughts of buying a property haven’t crossed your mind yet, because you don’t like where you live, think again. If you can’t settle within the same community, there are still 195 countries where you can migrate.

Let me give you a heads up, though; there are some places where real estate properties are extremely costly. In fact, in the following cities, $1 million dollars can only give you a small piece of land. Here are the three most expensive metros for real estate.

Monaco

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The government of Monaco doesn’t impose any income taxes on its residents, except for French nationals who are still required to pay personal taxes directly to their home country. While there may be higher VAT on other expenditures, this policy allows its people to save up on things they want and need to buy for themselves. A significant downside, however, is the reality that properties within the country come with an outrageous price.
Imagine, for a million US dollars, anyone including foreigners may purchase a 15 sqm of land. This area is just enough for a standard room or a one-car garage. Unless you can create a mansion out of this small space, one million may not suffice.

Hong Kong

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Another city with minimal taxes and lenient foreign ownership policies is Hong Kong. This autonomous region also owns some of the most expensive lands on the planet. Its economy has also allowed its affluent population and global corporate heads to accumulate multiple real estate properties for residential and commercial use.
If you decide to invest $1M in this city, brace yourself to get approximately 20 sqm, about the same size as a Superior Room in a 5-star hotel in Istanbul.

London

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Home to the British Parliament, London is one of the planet’s most sought-after cities for living. There are many witty articles online to read on why you should live in this metro, which includes the citizens’ ability to go to Paris by train when boredom kicks. Most of the residents would say that they compared to other places they go on a holiday, expenses in London are still higher, but so are their incomes. Thus, the demand for property in this city is skyrocketing. London, after all, is another haven for the wealthy real estate investors.

With a million dollar budget, you should be able to get at least 25sqm of land property. That’s more decent than the above cities.

That sums up the list of the most expensive lands for sale on Earth. If you can’t afford these places, that’s okay. But owe it to yourself to make a good real estate investment while you can.

5 Expensive Real Estate Cities Where You May Afford Housing Soon

The real estate industry is nearing a bubble, after a global land boom. After a significant increase in housing market prices and demand worldwide, experts believe in a high possibility of price decline in the years to come.

According to recent studies, at least five global cities are facing this decline. For people who haven’t owned any properties in these areas yet thinking about getting one, the bubble burst is something to watch out for by all means.
Here are five cities where a significant bubble burst can come sooner than later.

Vancouver, Canada

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Price listings for homes in Vancouver have increased over time, influenced by an uplifted buyer demand in the area. In almost two years, the value of houses has already increased by a quarter. Thanks to foreign buyers who would like to try their Canadian luck.

The government has imposed a higher property transfer tax this year to reduce the possible effects of any housing bubble.

London, UK

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In almost a decade, real estate properties in London have risen by at least 15% even when salaries are reported to be lower nowadays.

Stockholm, Sweden

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The Swedish capital has been very expensive lately when it comes to real estate, that even bigger corporations are starting to protest. Their central bank has helped lower mortgages by a significant rate in the recent years, due to affordability issues.

Sydney, Australia

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This Aussie city has attracted many foreign buyers and investors in just a few years, especially Asians. While Australians currently categorize their housing markets as extremely unaffordable, experts believe that the real property prices are nearing a balloon.

Hong Kong, China

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Low-interest rates play a critical role in causing an economic and housing bubble in places where prices have gone greatly unsustainable, including Hong Kong. While housing costs have gone up, incomes are not improving which creates an affordability issue for most people.

While these areas are still enjoying their land boom, we may have to wait longer before a bubble burst. Then again, we may not have to wait that long.