Buying a home for the first time can be a life changing experience. But, whether it changes your life for good or bad depends upon you. Choose the lender wisely and take precautions when you are buying a property, and you have chosen the good reasons behind the experience. To avoid tasting sourness in this experience, make sure you do make the given 2 mistakes that are often made by first-time home buyers:
1. Running For The Tax Return
Let’s take consider situations and compare them by pitting them against each other. In the first situation, you are staying on a property that you have rented and don’t own. You pay the monthly rent and that’s where your obligation to the property ends with no headache about taxes, insurance premiums or mortgage payments. In the second situation, you are the owner of the property that you have bought by taking out a house loan. You need to pay the mortgage amount along with the insurance premium and other taxes. The only benefit that you receive is that you get a tax deduction for the interest amount for your mortgage payment. This is a choice most first time home buyers (or renters) face and they make the mistake of going for the second option instead of the first option. The driving force behind this is the fact that the second situation receives a tax return that is deductible from the total income tax payable. Real estate and tax experts have been trying to convince buyers that the monetary gains from the first situation will far outweigh the meager tax returns you will be enjoy in the second situation.
2. Not Researching The Neighborhood
One of the most common rookie mistakes that first time homebuyers tend to commit is that they ignore the need to research the neighborhood where they are planning to buy the house. Remember that just because a piece of property meets your budget, it is not necessarily your dream home. A dream home has a number of other attributes to it and the neighborhood is one of the most important ones.
Here are a few things that you must take extra care to find out when choosing a new real estate:
a. The Immediate Neighbors And Their Attitude And Lifestyle – The immediate neighbors are the ones who stay next door to you. Find out whether they have any problems or qualities that you need to address. A healthy and friendly relationship with your immediate neighbor will make all the difference over the years.
b. The Infrastructural Facilities – Find out about the infrastructural facilities available near your property of choice. Are you planning to start a family? If yes, then there must be private schools close by. Do you have elderly people in the household? Look for a full facility hospital in the vicinity for emergency purposes.
Other aspects of the neighborhood that you must look out for are the public transport availability and departmental stores for buying regular household items.
Now that you know about these two common first-time home buyer mistakes, you can take extra care to ensure that you don’t commit them.
Brenda Lyttle is a financial expert with great interest in the real estate sector. For more guidance on buying a home for the first time, she recommends that you visit bankoftheinternet.com.