Buying your first home is one of the most important financial decisions you’ll ever make. Before you start looking, take a few minutes to answer the following questions.
1. What is my actual budget?
Not just the down payment—but also the monthly payments that follow, plus a contingency fund for unexpected expenses. We recommend that your monthly mortgage payment not exceed 30% of your net income.
2. Is this area a good fit for me for the next 5+ years?
Real estate isn't like cars—you can't just switch it out easily. Think about where you'll be working in three years, whether you plan to have children, and how often you'll want to see your family.
3. What is the infrastructure like in the area?
Shops, schools, transportation—take these into account, even if you don’t currently need them. This directly affects the property’s future market value.
4. What is the condition of the building?
Age, last renovation, common areas, condominium ownership. Ask for the expense ledger for the past 3 years—it will tell you everything.
5. What is the actual liquidity?
If you have to sell it in two years—how quickly will you be able to do so? This is a question most first-time buyers don’t think about, but it’s a critical one.
