Image: Tierra Mallorca on Unsplash

Buying a house is one of the most significant financial decisions you’ll be making during your lifetime, and you need to take it seriously. Sadly, most homebuyers don’t have the necessary experience to know what to look for in a house, how to evaluate the different aspects of the house, to what degree to trust the real estate agent. Although to be able to accurately assess housing market prospects and ensure you make the best financial decision will take years of education, you still can learn the basics relatively quickly to ensure you don’t get easily tricked by the agent’s rosy language and make a financially disastrous decision.

Look at the Housing Market of the Location

You have to internalize the fact that your house is first and foremost a financial asset. Many people fail to make the right housing decision because they prioritize other aspects of the house before the financial aspects of it. For example, some people care more about the house being near a good public/private school for their kids or it having good access to public transport.

While these are absolutely important considerations and we don’t want to play them down, they don’t take precedence over financial considerations for multiple reasons:

  • You’ll likely find another home that will fulfil those same requirements elsewhere: you are rarely constrained when looking for a house with good access to public transportation or public schools, there are a lot of houses that fit those criteria. The same is true for most of your requirements. That’s why it is almost always a better idea to look at markets first and then decide the location of your house based on which housing markets are projected to do the best.
  • The housing market affords you more flexibility in the long run: imagine two scenarios, in one, you care minimally about the market and you only buy a house based on your immediate needs. In the other, you’ll keep the housing market in mind and take all the steps necessary to ensure your house doesn’t have a chance to flop in prices. Now, fast forward ten years into the future, it is likely that the price of the house has stayed the same or has risen minimally and you no longer have the same needs, so when you try to sell your house, you’ll be significantly financially constrained. On the other hand, the other house has grown in value 5% year after year, and now, it is significantly more valuable. When you think about selling it ten years later, you’ll have significantly more money to buy another excellent house.

How Suitable is the House for Your Needs?

Now that you’ve ensured you have found a sustainable area with good financial prospects, it is time to ensure you get all you need out of the home before you make the final purchasing decision:

  • Looks and design: how the house looks is obviously important. You need a design that is compatible with your furniture’s design, your own taste, and your family and friends’ expectations. Wooden staircase design is obviously a great idea if you want to go the traditional home route, but it might look out of place depending on its colour in a more modern home.
  • Its size: are you living alone? With a partner? Expecting children soon? Have a lot of guests? It is hard to make recommendations for the home’s size because every family has different requirements. You need to make sure all your furniture and personal items will fit without problems when you finally move them using a removal service near you. Nonetheless, you must have to not only consider your immediate personal requirements for size, but you should also consider the size requirements in the future.
  • The garden: of course, if you want to buy an apartment, this doesn’t apply to you, but most people’s dream home is a suburban house with a large, lush, and green garden with beautiful flower beds. Pay attention to the size of the garden, whether you’ll get a sun canopy for your house or not, and the availability of a shed to store your tools. How much you should care about these features depends on how much you value having a garden.
  • Urban, suburban, or rural: how far do you want to be from the centre of the city.  How close do you need to be from a large shopping mall? How long will your commutes be? These are all important questions you need to ask yourself. Suburban homes have gardens, are generally more relaxing, and provide a good environment for your kids to grow up. Urban properties are less expensive, more convenient, and more environmentally friendly and sustainable. Rural homes don’t provide any clear advantages unless you have a rural business or really value nature and your cultural roots. You can curb some of the advantages of each area. For example, for urban areas, you can buy an apartment overlooking a garden. For suburban areas, you can get best adult scooters so you can easily move around the area and cut down on the longer walking distance to necessary shops. For rural areas, you can buy a property in a small town or village that has a high-speed railway or an autobahn to the nearest city. So, it is important to learn how to ameliorate the weaknesses of each type.

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