Are you still wet behind the ears when it comes to home buying? You’re not alone. Everybody has a first time. Just sit back and relax, baby. Reclaimed Home will make it alright.
Seriously, it’s a big f*in’ deal. That’s alotta dough you’re forking over. You SHOULD have questions. So, what steps do you need to take? How do you go about it?
1. The first thing is to go over your budget. Pretty obvious, but it’s incredible how many people start looking before they have their finances worked out. How much do you have for a down payment? Don’t forget that closing costs will be between $10k-$20k.
Talk to a mortgage broker or bank to see how much they will lend. Then take a good look at your present and future and make sure you can pay that monthly amount. Do you need rental income? How much? Size matters in this instance. Bigger rental units equal more income.
2. Location, Location, Location! True dat. The one thing you cannot change. Unless you want to move the house and that’s kinda a big deal. You can redo just about anything inside the house. Maybe even add an extension if it’s a tad small for your needs. But you have to love where you live. And please do yourself a favor and never put the house before the neighborhood. You can have your dream house, but if you hate life outside of those four walls, then what?
3. It’s an investment. Yes, you need a place to live, but that doesn’t mean you should make unwise decisions. Just don’t get ripped off because you fall in love with some bathroom tiles or a zip code. (Yeah, I know I mentioned location is key, but it doesn’t mean by any means necessary). What’s a good investment? A run down place in a great neighborhood. A fabulous dream home in an up and coming neighborhood (that you also happen to love). What’s a bad investment? The best house on a shitty street 10 blocks from an awful train line.
4. To Renovate or Not. Hmm. Personally, I loves me some fixer uppers; however, it’s not for the faint of heart. BUT! If you don’t want to renovate, you kind of can’t be too fussy with what’s on offer or you’ll be looking forever. What are the chances that the seller has put in exactly what you desire? So, you’re either buying into someone else’s taste or you make it your own from scratch. Tweaking a finished home is great, but keep in mind that it’s awfully wasteful to rip apart a $30k kitchen so you can make it your own.
Question is, do you have what it takes to live with a renovation? Are you hiring people or tackling it yourself? Do you want to be married to your house for the next few years? That means you’re a house wife. Oh, it’s all worth it in the end, but you need to realize what you’re getting yourself into first.
On the other hand…. and I can’t stress this enough….be careful when buying a “renovated” house. You do not know what is going on under those new floors and walls. Don’t want to scare you or anything, but not everyone repairs rotting joists or repoints structural brickwork before slapping something over it. If it looks like a quick, shoddy renovation, there’s a good chance something may be going on underneath. Not a rule of thumb, but we found crazy-sloppy work in 4 out of 4 of my houses. Just sayin’.
Well, that should be a starting point. Feel free to post questions if you have any. Now, go forth and look!
