Simple Tips for Buying a House on a Limited Budget
Buying a home is an exhilarating investment, but one that may also leave you anxious. This is understandable because a lot is at stake and you would not want to get it wrong, especially if you’re working with a limited budget. Have a look at four simple tips below that will help you successfully buy a house that you will be happy about when all is said and done.
Make Sure You Have Enough Room for Your Pets
Approximately 70% of all apartment renters own pets. If you’re a pet owner moving into a house for the first time, it’s important to consider your fur babies when you go house hunting. Look around for homes that have a sizable front and back yard where your furry companions can enjoy running around to play and exercise. Depending on how many children you have, if any, your new place should give everyone enough room to live comfortably.
Don’t Participate in Bidding Wars
To avoid spending way above your budget, it’s a good idea to stay out of bidding wars, as only the seller wins these wars. Settle on an amount that you’re willing to rise to if your initial bid gets rejected, and be ready to walk away rather than try going overboard. To avoid getting into this position, avoid getting emotionally invested in a home before you’ve reached a price understanding with the seller. This will make it easy to rationally decide which home will fit your budget, saving you from a lot of expenses you had not planned for.
Factor Your Home Insurance Into Your Budget
Don’t forget about home insurance, as it’s important to keep your home and property safe once you move. Shop around for your ideal insurance package, and after you find out how much you will need to spend on it, add up this cost to the house’s cost. If it’s too high, you’re better off shopping for a cheaper house so that you won’t have trouble paying for insurance. Generally, your insurance cost will vary by the specific property and the level of protection you want. On average, though, it costs about 0.5% of the total purchase price of the home. This should guide you in making an informed decision before you purchase.
Consider How Much Storage You Need
Finally, think about your storage needs, as it won’t be practical to have to rent extra storage space for all your property, especially from a financial standpoint. Make things easier by first disposing of anything you don’t need so that you don’t carry junk into your new home. Garage sales will get you some extra cash, which is always welcome, and donating the items will help persons in need and put a smile on their faces. Between 2% – 6% of the population is impacted by hoarding disorder, which sees people struggle with storage space as they end up keeping a lot more items than they need. Avoid hoarding and instead, travel light to your new home. After all, you will accrue many more items over time.
It’s important to be realistic about what you can afford and to have a list of the most important considerations for you. Stick to this list and avoid distractions from it as they will only prolong the process for you. Stay focussed in order to make the journey to homeownership a lot more stress-free, and soon enough, you will have acquired an asset of which you can be proud for a long time to come.