For most people, buying a home is the
most significant investment of their lives. And in spite of the
doubt and confusion clouding both the financial markets and news headlines,
there are many genuine real estate opportunities in the Bahamas and
Freeport specifically – especially for first-time buyers. Did you
know that Permanent residents with the right to work or Bahamians are
exempted from Government Stamp Duty on a home purchase if they are first
time home owners and the home is of a value under $250,000. On average,
housing inventory is up, prices are stable and historical data on our
island demonstrates that purchasing a home
has proven a sound long-term financial investment. However, first-time
home buyers are often understandably anxious when it comes time to making
the purchase. Here is a simple “do and don’t” list to make the
process easier for everyone dreaming of home ownership.
DO:
-
DO utilize the internet
to arm you with as much knowledge as possible.
For example, research all the real estate web sites to see what’s
out there.
-
DO explore mortgage
pre-approval. Getting this early green light will help
others involved with your purchase that you are serious about home ownership
– and well-qualified. Go visit the banks and find out what they are
willing to lend you.
-
DO line up your
“all-star” team of professionals before game day.
A team of experienced professionals will be key to making the home
buying process simple and seamless. Start by interviewing and
selecting a real estate agent who you “connect” with. That
estate agent should also be able to help you indentify suitable lawyers,
banks, home inspectors and others who play a role in the process. Make
sure to explore the governments first time home buyers stamp tax incentives.
-
DO anticipate your future
needs and buy for lifestyle.
Try to anticipate how long you’ll live in your next home and
plan for major lifestyle changes when possible. What may make
a perfect starter home for a couple might not work as well when children
come into the picture. Remember, people move for lifestyle reasons
and your first home will likely not be your last.
-
DO hone in on your
housing priorities
. Your ideal home may have a
porch, a pool, ocean views, a dock on a canal and five full baths.
But before you start looking, make sure to separate your “must-haves”
from your “nice to haves,” so you know where you can compromise
to meet your realistic budget.
DON’T:
-
DON’T fall in love
with the first house or neighborhood you see.
That grand colonial with the picturesque view may win your heart at
first glance, but don’t fall in love too fast. You need to keep
an open mind to make sure you find the right fit for all your needs.
At the end of your search, it may turn out that the smaller home in
the gated community is a better bet all-around.
-
DON’T buy beyond what
you can afford. It’s easy to fall into that all-you-can-eat
attitude when it comes to your first home purchase. You “want
it all” when it comes to size, amenities, location, etc. But
remember that your eyes may have a larger appetite than your wallet.
Make sure that the down payment, closing costs, and monthly expenses
are truly within your income and savings range
before you sign
on the dotted line.
-
DON’T expect too much.
It’s unrealistic and unwise to expect your housing investment to appreciate
overnight. Buying for lifestyle, as opposed to trying to turn a quick
profit, will help ensure that you are viewing home purchasing and ownership
in the right context.
-
DON’T try to time
the market. By the time most consumers sense a major real
estate or financial market shift, the tables have typically already
turned. Instead of waiting for a slim and unreliable window of
time – and potentially missing out on the perfect home – buyers
should focus on their own lifestyles and
buy when the time is truly right for them. The markets is softer than
it was now so this is a good time to buy. If you keep waiting for the
market to get worst you might miss the perfect house.
-
DON’T jump into an
exotic or confusing mortgage. When it comes to down payments
and mortgages, if it sounds too good to be true, it probably is.
Be sure to read carefully through every aspect of the proposed agreements
to fully understand your end of the bargain. Consult your real estate
agent and attorney on your deals. Don’t jump into a private
Owner Financing Deal for what seems like an attractive rate now may
balloon exponentially a few years down the road. So arm yourself
with information and don’t be afraid to ask questions.
-
DON’T underestimate
the value of a trustworthy real estate agent’s on-the-ground expertise.
While being a savvy buyer and doing one’s homework will help on the
road to homeownership, a local expert with years of negotiating experience
is invaluable when it comes to scouting out the perfect home – and
closing the deal.
So now you know what to Do and What
Not To Do when you buy your first home and for this upcoming weekend
here is a little advice… Don’t drink or eat too much and Do Have
a great Independence Day Holiday. Until Next Week.
Contact James at
Coldwell Banker - James Sarles Realty
james@sarlesrealty.com
www.sarlesrealty.com