See everything you need to know here about one of the most important decisions of your life: buying your first property!

Buying your first home is a significant milestone in life, signaling a new chapter full of promise and challenges. However, this real estate adventure is not to be taken lightly. 

The real estate market can be a minefield of confusing jargon, complex contracts and seemingly endless choices. So it's essential to enter this new territory armed with all the necessary information.

From the initial search for the perfect home, to negotiating terms and closing the deal, we'll guide you every step of the way. Join us in reading!

Understanding the real estate market

For starters, the real estate market is like any other market – it's a place where buyers and sellers meet. But instead of fruits and vegetables or cars and bicycles, houses, apartments, land and other types of property are for sale.

Now, you might be wondering, how can you "understand" this market? Well, it all starts with observation and research.

The first thing you need to do is study your local market. That means knowing the average home price in the area you're looking, understanding whether prices are going up or down, and knowing how long homes typically stay on the market before they sell. 

This will give you a good idea of what the fair prices are and help you negotiate a good deal.

Real estate market trends can influence home prices. For example, if many people are moving to a city, the demand for houses may be higher and therefore prices may increase. 

On the other hand, if lots of houses are being built but not many people are buying, prices may fall. Keeping an eye on these trends can help you decide when is the best time to buy.

How to determine your budget

Start by listing all of your sources of income. This could include your salary, rental income, pensions, among others. If you're buying the home with someone else, like a spouse or partner, include their income as well.

Then list all of your monthly expenses. This includes things like food, transportation, children's expenses, entertainment, electricity bills, water, internet, and any other regular expenses you have.

If you have loans, car payments, credit card debt, or any other type of debt, be sure to include them on your expense list.

Don't forget to include the amount of money you are saving or investing each month. This is important because you don't want to sacrifice your retirement savings or other financial goals to buy a home.

A general rule of thumb used by many financial experts is the “28/36” rule. This means you should spend no more than 28% of your gross monthly income on housing costs and no more than 36% on total debt (including house payment, car payment, loans, etc.).

Usually, when you buy a house, you need to put a “down payment” – which is a percentage of the total price. Ideally, you should strive to save at least 20% off the house price for this down payment.

The search for the perfect home 

The search for the perfect home is an exciting journey, but it can also be a little daunting. However, with a few tips and tricks, you can make the process go more smoothly and even fun.

Before you start looking, make a list of everything you want in a home. This could include things like the number of bedrooms, whether or not you want a garden, proximity to good schools, whether you want a big kitchen, and so on. 

Divide your list into “essentials” and “wants” – the things you absolutely need and the things that would be nice to have but aren't essential. Research different areas and neighborhoods to see where you would like to live. 

Consider factors such as security, nearby amenities (such as stores, restaurants, and parks), and commuting time.

Don't buy the first house you see. It's important to visit several homes to get an idea of what's available in your budget. During visits, pay attention to the condition of the house. Look for signs of structural problems, check the quality of the fixtures and finishes, and try to imagine yourself living there.

The internet is a great tool for looking for homes. There are many websites and apps that allow you to view property listings, photos, and even take virtual tours. However, don't just rely on the internet - it's always good to see the house in person before making a decision.

It's rare to find a home that has absolutely everything you want. Be ready to make some compromises. You might not be able to find a house with a big kitchen in your favorite neighborhood that's still within your budget. In those cases, you need to decide what is most important to you.

Remember, the search for the perfect home can take time. Don't rush, and don't feel pressured to make a decision. Your new home is a big purchase, and it's important to make the right choice.