Buying a house or a flat is an ambitious dream for many people, fraught with problems, concerns, and worries. Yet, everyone has been, is, and will continue to be concerned about housing. And I speak from personal experience.
Jean and I recently had to deal with buying our first home on our own, and it was a learning experience. We had been renting up until that point, but we decided it was time to make a move. So I'll let you in on a little secret.
Even for us, who have been assisting others in attaining this goal for years, it was a stressful procedure. That is why I decided to produce this guide with the keys to navigating the home-buying process as successfully as possible.
Is 2022 a good year to purchase a house?
You've been renting for a while, or you're thinking of moving out of your parents' house and having your room. However, you've been saving, you've acquired a guarantor, and there's no indication that rental costs will fall.
Without question, purchasing appears to be the most acceptable alternative. Even your surroundings push you to do it. Is 2022, however, the optimum year to accomplish it?
Recent history has proven that forecasting the evolution of real estate markets is extremely difficult. On the one hand, if you reside in a major city, you may have observed that costs are still rising, albeit at a slower rate. On the contrary, if you live in the suburbs, buyer demand stays consistent, keeping prices flat compared to past eras.
Knowing if 2022 is the ideal year to purchase will rely on various factors, including where you want to live, how much you can afford, and your expectations for your first house.
Let's look at what you should think about before you start looking.
What factors should you consider while looking for a flat?
Before beginning the hunt for a property, every buyer should ask three questions: when, where, and for what.
We look at how you can tie all of these aspects together and what you should value from each of them to buy well.
1. Price changes at the time of purchasing
More than 60% of house buyers believe that the most excellent time to purchase is when the price decrease. Therefore, it appears natural to think that we would buy better and repay our investment faster if prices decline.
The issue is that, as we have seen before, the unwritten rule that the house always appreciates is not always followed. With a few exceptions, the housing market is one of the most stable, but it is not immune to ups and downs. As a result, while deciding when to purchase or wait, you must consider the market trend.
In general, we might argue that the optimum moment to buy is when prices remain constant yet continue to rise. That is if the price does not fall. It will imply that you are purchasing a rising value that you will appreciate as soon as you make the transaction.
If you wait for prices to decrease, you will be paying more now than your property will be worth tomorrow, with no assurance that prices will fall again.
2. Invest or purchase.
Before you start looking for a flat, consider if you want to buy to find a place to live for the next few years or if you want to make a medium or long-term investment.
For example, you may consider purchasing a tiny flat in a developing neighborhood or with attractive urban designs right now.
You know that if you decide to enlarge your family, this house will not be suitable. However, it will revalue with time, and you may benefit from your investment by renting or selling at a higher price.
You can guess the price per square meter of a three-bedroom apartment, but you know it won't rise much in the following years.
You are purchasing to live and settle permanently in your situation, with no plans to change floors or areas later.
3. Mortgages in 2022.
The bad news is that you will almost certainly need to take out a mortgage to pay for the property you want to buy.
The good news is that you are doing it at the optimal moment. Not just because of the development of interest rates but also because, as a consumer, you are more protected than ever with the new mortgage legislation passed last year.
Banks are providing incredibly intriguing goods to their clients, and it does not appear that this will change anytime soon. Banks currently bear most of the costs involved with mortgage loans so that you will save a significant amount of money. And switching banks or switching from a variable rate to a fixed rate is now easier than ever.
Of course, the requirements for obtaining a loan from a bank are more stringent than ever. You must demonstrate that you will be able to pay, which may seem obvious, but it did not appear to be necessary until recently.
You will need to invest your resources, avoid taking out too many loans, and you may need a guarantor.
4. Where to live.
I don't need to explain the significant price difference between purchasing a property in a metropolis like London or Chicago and purchasing a home with the same attributes in a town on the outskirts.
There might be up to 30% variances inside the city depending on the neighborhood you pick.
That is why it is critical to consider where you want to live rather than simply picking a location because you like it or because it is trendy.
If you wish to reside in the city center or in places where public parking is scarce, you may need to consider adding a parking spot to the lot.
It is critical to carefully consider where we wish to reside, as you can see.
Always keep your budget in mind, develop a list of the pros and cons of each place, and make your decision with the expectation of living in your new house for several years.
5. Real estate corporations.
Never before has it been so simple to find listings with dozens of floors, complete with photographs, descriptions, and pricing.
You may not recall it, but not long ago, to find out which flats were for sale in a specific area, you had to visit real estate agencies on the first floor, purchase specialized magazines (which were out of date), and write down the phone numbers that appeared in the newspaper.
Today, you have access to all of that information on your mobile phone, anywhere and anytime, and you receive news notifications in your mailbox every day.
The average time it takes a person to find a flat, on the other hand, has not fallen as much as projected. Every day, buyers who have been looking for an apartment for more than six months without a result visit our office. How is this even possible?
The solution is straightforward. The apartments are not currently available to buy online.
You could find a flat offered on a real estate portal today, but when you phone the next day, it's no longer available since it was under negotiation.
This does not imply that I will stop utilizing the internet.
However, it has been demonstrated that placing yourself in the hands of a skilled real estate agent can save the time it takes to find the property you need by up to 50%.
The crucial point is that you put your resources in the hands of an agency.
The answer, in our opinion, is to deal with a real estate agent that understands the digital world, has a portfolio of excellent residences, and provides you with sound guidance from the start.
Not to mention the necessity of feeling at ease with them. It is pointless for a real estate agency to be the most professional if not inspire trust.
When Jean and I bought our first flat, we went through every stage in the first person. We'd seen it with hundreds of clients previously, but never in our skin.
They were months of big decisions, challenges, and nerves. However, the experience helped us discover the property we had long desired and helped us better comprehend the challenges our clients encounter.
We have committed more resources to provide a better buyer experience. Our advice is not just focused on outcomes but also on ensuring that when someone trusts us to locate them a flat, they can do so without worry, with assurances, and feasible in the shortest amount of time.