24 Jun Should You Buy the Most Expensive Home You Can Afford?
Oftentimes, spending less on a property than you can actually afford is a smart move – although it may seem counter intuitive – and the advantages of doing so can be found below:
You can get into an expensive neighborhood without spending all your life savings:
As is usually the case, the best, most exclusive and desirable locations are also the most expensive, but by buying a cheaper property in that area, you can join the best communities, without breaking the bank.
Get a property value boost, almost without fail:
Once the more expensive, desirable properties in the neighborhood find buyers, yours will be worth a lot more.
Buyer interest will be piqued:
With the majority of property purchasers buying houses in the middle range – rather than the most, or least expensive – even if you carry out the bare minimum of renovations or upgrades, you’ll still be guaranteed a higher price when it goes to market and generate a lot of interested buyers.
You could strike an even better deal:
Many property buyers don’t want the cost, stress or hassle of undertaking renovation projects, so you could find yourself as the only bidder on a cheaper property, and may even be able to negotiate a lower price than the original one.
If you’re ready to purchase a property and are looking for a good deal on a cheaper place, below are some tips to help get you started:
- Don’t rush into it
Buying any property, whatever the price, is a big financial decision and one that shouldn’t be hurried into. Think over your finances carefully and be honest about what you can and can’t afford.
- Find a reputable, local real estate agent
An agent with experience in your locality will be able to give you a much more informed and detailed breakdown of the local market and spot good deals that might be just what you’re looking for.
- Compare recent sales
Comps, or comparables, are far more accurate coming from an agent compared to those you’ll find online, and can help you get a better deal.
- Get quotes for any repair or renovation work required
It’s important to have a good understanding of the cost of any work that may have to be carried out, and never spend more than you can afford on it.
- Talk to a mortgage broker
A mortgage broker can help you understand the loan market and get a better deal when finally decide on a property and want to make a bid.
So, don’t be tempted to spend all your money on a property, even if it does seem to be your dream home, and instead, consider the potential advantages of buying a cheaper home and carrying out some repairs and renovations.