Whether you are buying your first house as a married couple or you’re further along the track, given the current economic climate it is more important than ever that you know what you’re doing.
One of the first things when looking for a house is to look at your budget and what you can afford. Know what you can reasonably repay and don’t over commit yourself, so that if something goes wrong and you have sudden medical expenses etc, that you are left tying to figure out how to pay the mortgage. Over committing finances puts too much strain and stress on a marriage and may lead to other problems.
In Australia a number of houses have been repossessed by the banks or lending parties because the people have over committed. Then when interest rates climbed the borrowers could not pay. Now interest rates have come down but it’s too late for some people. Their houses have been sold to others.
Decide what price range you can afford first and don’t be swayed from it by agent’s photos or spiel. This is especially important if you plan to buy at auction. Don’t let emotions dictate your actions.
Yes, we had it happen once we with house we were very interested in that was up for auction. Unfortunately so were a number of other people. The price started to climb way beyond what it should have. It turned into a bidding war. Much as we loved that house, we walked away from it. There will always be another house you’ll love just as much.
Secondly, sit down as a couple and make a list of those things you’re looking for in a house. Some will be non negotiable. Then you might compile a second list of things you’d like but are prepared to be flexible on. You’ll likely to find you and your spouse are not looking for the same things in a house. But more about that tomorrow.
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