There is nothing quite like owning your own home and financially there are huge benefits too. But when you’re looking to buy a property for the first time it’s easy to do it with blinkers on. You end up looking at all the positive bits – of which there are many – and you forget to allow for the downsides.

The big difference between buying a house and renting is that when you rent, your landlord pays the bill when things break, or go wrong. When you buy your own home, you start building equity rather than burning money on rent each month, but you also need to consider these hidden costs, because they can certainly add up.

Upkeep of the garden

Now you can do all this yourself. But you still have to shell out for a mower, a strimmer and all the bits and pieces that will help you keep your garden in shape. Over time this can really add up. When looking at houses you should consider any costs associated with garden maintenance and how you will handle the work (ie, do it yourself, or get a gardener?)

Maintaining or replacing the roof

Everyone has heard of disaster situations, but you may not realize that roof maintenance is something that needs doing semi regularly. Costs range from a little to a lot, but proper upkeep needs to be budgeted for. If you see a loose shingle, get it nailed back into place as soon as you can. This is not an area of your home you can get by on if it isn’t in good condition.

Every roof will need replacing eventually and this can cost thousands of dollars. Yet the alternative will be a lot of damage both internally and externally due to the consequences of leaks. Over the lifetime of home ownership you are likely to face this cost, so budget for it now.

Insurance costs

If you’ve been used to renting you’ll probably be familiar with the amount you pay on insurance each month. Be prepared for that amount to go up considerably once you buy your own home. The building itself is very valuable, and that means it is a big risk for the insurance company; insurance is essential, but not cheap.

Exterior doors

Again, one of those things that doesn’t need doing often, but can be surprisingly expensive when they do. You might only need to replace your garage door after 10 years or more, and same for your front door, but make sure you plan for the costs ahead of time.

Utility bills

Ok, we have to pay utility bills no matter where we live, so this probably is that well hidden, but it is essential to consider what your bills will look like in a new house – if you are moving somewhere bigger, be prepared to pay more for heating. In any case, make sure you factor these costs into your monthly spend.

Ongoing repairs

It doesn’t matter whether you buy a new home or one that is several decades old. Whatever property you move into, there will be regular repairs to do. This could be anything from replacing old and worn guttering to painting the exterior to help ward off the rain. You will probably need a new boiler sooner or later, a new shower or cooker etc… It all adds up.

Summary

It makes sense to allow a budget for repairs and additional home costs you can’t always foresee when you move into a property. Home ownership does indeed come with costs you may not know about to begin with. The more you can do to prepare for those costs, the better off you’ll be.

If you’re interested in taking your first steps onto the property ladder, it’s important you make the right decisions so that your experience is a positive one.

Buying property has always been risky, but there are ways to approach the process that will help you make the right choice first time…

Get your finances in order

Gone are the days of 100% mortgages, so if you want to buy a property you’ll have to start doing what most first time buyers did years ago and start saving for a deposit. This might extend the period in which you can buy a home, but it will put you in good stead for the future as your mortgage will be lower and you will not have to endure a long repayment period as those on 100% mortgages.

Before you start looking for a property, make sure you arrange a meeting with a mortgage broker first and find out how much you can borrow. Once your finances are in place you will be able to conduct your search according to budget and find your perfect first home.

It’s always advisable to do a thorough evaluation of your finances including income and expenditure on monthly outgoings. For example, if you’ve been offered a mortgage up to 200k, ask yourself if you can live comfortably at the top end of your budget. You might find that it’s better to spend less than the forecasted maximum borrowing level so that you can accommodate changes to your lifestyle – such as a new baby, a job change or redundancy.

Choose your solicitor carefully

Make sure you choose a reliable solicitor who will act promptly and quickly and ensure the process moves as smoothly as possible. You may think you’re bagging yourself a bargain by choosing the cheapest solicitor, but they could slow the transaction down and cost you more money in the long run.

Ask your mortgage lender if they could recommend a solicitor or ask friends who they used when they were buying their properties.

Understanding the area

So, you’ve found your perfect house, but how well do you know the area? It’s really important that you do your research and find out what local amenities are close by including schools, public transport links and local amenities such as shops.

Do you know if you can get good broadband and internet connections, or how well your mobile network works in that area?

Are there shops or parks close by? Are these popular hang-out spots for teenagers in the evenings and would it bother you if they did?

Is the house close to a main road? Do you know what the traffic is like during peak travel times?  What is the parking like close to your property? If you have two cars, is there sufficient road space to accommodate your requirements?

All these factors are important when choosing a home, so it’s vital you do your homework first.

Getting it right

Buying a home is one of the biggest investments you’ll ever make, so it’s important you make practical decisions rather than emotion ones.

If the property you choose is cheaper than others in the area, investigate why this is. The last thing you want to do is buy a problem property that will be difficult to sell in the future.

One of the best things you can do is to invest in a full structural survey as this will give you a detailed report on the property you intend to buy and will highlight what work needs to be done to the house.

Relying on the lenders survey is risky as it is just a basic assessment and could cause you trouble later down the line if something structural goes wrong.

If you have debts that you want to clear before buying a property, speak to Baines and Ernst about their specialist Debt Settlement Service and you could clear your unsecured debts at a reduced rate.

If you tried to add value to your house when selling, you are almost guaranteed to walk away from the sale with a big smile on your face. If even the smallest task can add value to your house when selling. This could be a simple coat of paint somewhere, a small repair job of a cupboard door, or even as simple as keeping the house clean and tidy. Basically anything you can do to add value to your house when selling is a great idea as you only have one chance to get as much money as you can.

Would you like a quick sale on your house at a top price?

Well it all comes down to presentation.  If a potential buyer walks into a cluttered house, it will give them the perception that the house is small and pokey.  If there are dirty dishes in the sink, children’s toys on the floor, dust on the furniture and beds unmade, it will have a negative effect.  There are very few people who can look past a mess and see the full potential of the house.

Buyers want to be able to walk into a clean house with fashionable furniture, freshly painted walls, no clutter and a nicely landscaped garden.  If there is a good positive energy in the house, they will pick up on it immediately.

Their perception will be that there is little to no work to be done and all they have to do is move their furniture in.  If they fall in love with the house and they can’t resist it, chances are even if they feel they cannot afford it, they will do whatever is necessary to find the money for a deposit.

To get the best money you need to add value to your house when selling. Here are a few ideas for you.

Keep your place de-cluttered

Furniture counts

If your furniture is looking shabby and a little worse for wear, then in the long run it will be worth your while to get rid of it and buy something new or second hand.  Outlaying some cash before you put your house on the market will definitely add value to your house when selling.  For instance, if you spend and extra $10,000 on improvements you could add an extra $40,000 on the value of the house.  That’s a whopping $30,000 profit!!  People are prepared to pay top dollars for something they really want, whether they think they can afford it or not.

Add value to your house by moving out!

Another idea whilst you’re trying to sell your house is to move out and rent, moving all your furniture with you. Then either borrow or hire good furniture to enhance the look of the house, as they do for display homes.  It will cost you money in the short term, but the house will sell a lot quicker and for a higher price.  Or you could get a bridging loan and buy another house whilst you await the sale of your house.

Get rid of clutter!

People usually laugh when you tell them to get rid of clutter to add value to your house when selling. We all know that not everyone can afford to outlay cash for improvement, so the next best thing is to get rid of the clutter by hiding it or throwing it out. You can even hire a storage shed get rid of your junk temporarily. I have looked at houses that have had junk everywhere, and it obviously devalues the house instantly. Sometimes there has been so much junk, that I have been embarrassed to walk through the house to inspect it as I felt like I was intruding.

A simple paint job

Giving your house a fresh coat of paint will definitely add value to your house when selling. This is the easiest and cheapest way to brighten up your house and make it look fresh and clean. You can cover up all those fingerprints on the walls and scuff marks on the skirtings. A simple paint job could cost around $200 in materials and add between 5000 and $10,000 to the value of your house.

Welcoming buyers to browse

When the buyers turn up be welcoming and friendly and offer them a cup of tea.  A warm and friendly atmosphere will make them feel welcome and comfortable.  Remember that the energy in your house gives out a good atmosphere and will add to your chances of getting the price you are after.

Sound advice

If you want to add value to your house when selling and you do not have thousands of dollars to spend, as you can see there are many other options that do not cost much money at all. In fact going overboard with renovations, just before you sell your house, can also equally provide you with a loss. It is far better to invest less when you are trying to add value to your house when selling, as the less you spend, the more you make.

Article courtesy of Deb Diplock

When you are intending to sell your current home, you should aim to set a lasting and very outstanding first impression. It could be harder, if not impossible, to attain a second chance at a first impression. There are just too many factors to look at when selling a property. It may not be easy doing so. However, you could attain your goals if you would strategise.

Begin by understanding how most homebuyers select a home to acquire. Surely, buyers are not impulsively buying every available property they find. Their decision to acquire could be fuelled by combined emotions and logic. Most of the time, it is emotions that stand out and create much impact.

Appeal to the emotions

Home is more than just a house. In general, people refer to it as a comfortable and ideal place to get secured, happy, and relaxed. It involves raising and keeping a family. As a home seller, you should detach yourself from any emotional attachment to your home and start calling it and treating it more as a house. However, you should make sure any prospective buyer could look at your property as a home. This will not only save you money, it will also make you money.

Trigger an emotional response initially so you could encourage a positive response. If you have tried visiting and inspecting homes as you consider making a purchase, you should have noticed many presentation styles that are truly effective. Now is the right time you practice what you have learned from your own observations. Relate how an attractive home has triggered your emotions to make a purchase. Here are other effective techniques for using emotional factors to your advantage when selling a home.

Home presentation

Make the home as presentable as it could be. Doing so could stimulate an initial emotion: the thrill of owning the house. If the property stands out in the neighbourhood, more potential buyers could easily relate to it and build apparent emotions based on first impressions.

Depersonalise the house. Make this an important and necessary process. Your home surely is full of memories and events that could be traced and indicated by the fixtures and furnace. You should understand that homebuyers are out to buy homes that they could call their own, not anyone else’s. Set aside those personalise touches. Put away photos, trophy collections, and other personal belongings at the garage. Buyers would not like to associate the home to other people.

Finishing touches

Take away all the clutter. When a family has been living in a house for many years, it is just normal and logical that there is much clutter. It would not only make the home look messed up. Homebuyers seem to be allergic of home clutters. Such mess also builds up negative and unlikely emotions to prospective buyers, who could care less whether an old stuffed toy means so much to anyone from the family of the home seller.

Before any showing, make sure all clutters in all parts of the house are set aside and totally cleaned up.

Take care of the landscape and the garden. Such exterior areas of the house could instantly facilitate liking and connection. Not much emotion from the seller could be apparent and indicated in the landscape and the garden.

Here are 10 more tips for selling your house.

Andrew is a contributing author on several personal finance blogs. With several years experience as a low doc loan specialist with private lenders, Andrew has gathered useful knowledge of the market.

Due to the real estate economy, people are keeping an eye on their pocketbooks and are looking and buying properties that are marketed at a lower rate. Prices per square foot or meter in both the U.S. and Canada vary on location, home size, et. al. variables.

In Canada, the provinces of Newfoundland and Labrador contain the higher priced housing communities, due to the gas and mineral exploration. In 2010, the most expensive province for purchasing homes, is British Columbia. There are differences between Canada’s and the U.S. mortgage amortization. Canada carries a five year fixed rate for 25 years, while the U.S. amortization is for 30 plus years.

In the U.S. the top ten expensive cities to buy a home per square foot/meter, include:

1. NEWPORT BEACH CALIFORNIA – $625 per sq. ft. Newport Beach is an affluent town in Orange County, home to beautiful mansions occupied by well-known celebrities.

2. PALO ALTO, CALIFORNIA – $809 per sq. ft. Palo Alto is located in northwest Santa Clara County, in the San Francisco Bay area.

3. RYE, NEW YORK – $674, per sq. ft. Rye is a city in Westchester County, New York. In 2010, Rye, has the listed reputation, of being the third most expensive city in the country, in which to purchase homes.

4. SAN FRANCISCO, CALIFORNIA – $605 per sq. ft. San Francisco, is the twelfth, most populated city in the U.S. The driving distance between Vancouver, British Columbia, Canada and San Francisco, CA., is 1526 km.

5. LA JOLLA, CALIFORNIA – $533 per sq. ft. La Jolla is a fashionable seaside resort. It is located along 7 miles of the winding Pacific Ocean coastline. La Jolla is 12 miles, north of downtown San Diego.

6. GREENWICH, CONNECTICUT – $150 to $200 per sq. ft. Greenwich is located in Connecticut’s Fairfield County. Greenwich is one of the most affluent towns in the U.S. The town of Greenwich, in population, is twice as large as Manhattan, New York, which is the driving distance of 23 miles.

7. WELLESLEY, MASSACHUSETTS – $411 per sq. ft. Wellesley is a college town in Norfolk County, in eastern Massachusetts, located 13 miles from its capital, Boston. The Wellesley community is ranked, as having the largest percentage of adults, in the United States, who hold advanced and professional degrees.

8. PASADENA, CALIFORNIA – $440 per sq. ft. Pasadena , hosts the Rose Bowl and Tournament of Roses parades and is situated at the base of the beautiful San Gabriel mountains. Pasadena is located ten miles from downtown Los Angeles.

9. HONOLULU, HAWAII USA – $633.29 per sq. ft. Honolulu is situated on the island paradise of Oahu. Honolulu is second behind Florida, for the most beautiful vacation homes near the Pacific Ocean. Honolulu is a 5 ½ hour flight to Vancouver, British Columbia.

10. SANTA BARBARA, CALIFORNIA – $519 per sq. ft. Santa Barbara is located in Santa Barbara County, California and is a University town, housing Stanford University. Santa Barbara is a favored U.S. resort community, with the longest southern California coastline.

Alban is a personal writer at Home Loan Finder, which provide free information on home loan equity

Buying a house is one of the most complex processes for a first time buyer as well as for a veteran. A strategic financial planning is essential if you think of saving few bucks while buying a house. Research work is essential before you purchase a new home. If you are interested to save money this article would suggest few tips and trick that can be kept in mind while buying a home

What would be the best time to buy a home?

Spring is the best time if you are planning to buy a new home. With tax return in hand many home buyers look for real estate investment for substantial tax saving. This would help to transform a reasonable investment into superior one.

Tips to save money while buying a house:

1. Check your credit score:


Houses are easily available but the most difficult part while buying a house is to look for finance. If you have a good credit score it is not difficult to fetch a loan. The home loans would have higher interest rate or even refutation of credit, if you have a poor credit score below 660. Before buying a home make sure that you check your credit score. If you find your credit score to be poor then avoid applying for a home loan until you repair you it. You can rebuild your credit score by paying your bills on time and paying off your existing debts.

2. Apply for mortgage loan when the home price is low:


Due to economic down turn the price of home is reducing rapidly. You can look for an excellent bargain if you are a first time home buyer as the prices has dropped at an alarming annual rate of 18.7% last year.

3. Look for local incentives:


There are few states for instance Arkansas that offers a homestead tax credit. A home buyer can save thousands of dollars if he files an application with the country for his house. He would be able to get an annual deduction up to $350 from his property taxes.Make sure that you have all the documents of the home as the tax credit is transferable; it remains with the property and not with the old property holder. If you buy a house the homestead exemption law is applied to the new owner if you present necessary paper work.

4. Avoid unpleasant surprises after buying the house:


Before you buy a house make sure that you hire a qualified licensed inspector to inspect the house. You might require few dollars to hire an inspector but it would save your thousand dollars if you are prevented from buying a damaged house.

5. Make a choice between points and rate:


When choosing a mortgage you can select between paying additional point or lower your interest rate. Additional point is a portion of the interest that you pay at the closing of the mortgage loan by replacing the lower interest rate. If you are planning to stay in a house for 4 to 5 years take the benefit of the points. As the lower interest rate would save some bucks in the long run.

If you follow these tips and tricks then you would succeed in saving money while buying a house.

Homes are essential for everyone nowadays. Therefore there is an increase in the demands for home loans all through out the world. If you really want to save thousands on to your home loans then pay heed to the following tips:

Interest Rate!

The rates of interest will decide the life time payment amount. With any type of long term procedure, the interest rates are always transferable. It is better to receive quotes from many lenders and then make comparisons in their rate of interests. Inform the lender that you have found a better deal somewhere else, then see whether that lender can provide better facilities with lower rates to you. There is no harm in asking.

Extra Payments!

One excellent way to save your money on the mortgage loan is by finding out what the minimum amount is you are required to pay. Then always pay more if you can afford it..Make that your goal to stay ahead of the game. If your interest rate changes then make sure you are aware of your minimum payment again.

 Installments!

In spite of paying for the monthly payments, it is advised to make payments after every two weeks because this way you are saving great money.  Of course if you can pay weekly, this is even better. The  sooner you pay back the loan, the less you will have to pay in the form of interest.  Always check out that your home loan contract to be sure that they do not charge for making extra payments or even paying out the loan amount earlier.

If you try some of these tips you will be sure to make a sale and maybe even make more money than you expected:

• First appearances count: Concentrate on the front of the house and how it looks.  People will simply drive by if they see something they do not like.  Of course you cannot help it if you have the front door in the wrong place, but there is alot you can do.
• Paint: Tidy the place up with a fresh coat of paint. This is one of the cheapest improvements you can do and it can make you the most money.
• Correct lighting: Make sure the interior is light and spacious – airy.  Turn lights on if you have a dark room.
• Clean and tidy: This is an obvious one but people still do not do it.. Especially if you have tenants in a house that is for sale.
• Nice smelling: If you have a bread maker, have it going, when there is an inspection on…Hmmm Yum..Who can resist fresh bread. .Maybe you could brew a coffee, cook a cake, or whatever suits you.  Think about what makes your house smell nice.  Maybe you have some flowers in the garden – transfer these into the house, especially the bathroom, there is nothing nicer than a nice smelling bathroom!
• DE-clutter: Get rid of excess furniture and junk. Declutter your house to make it look bigger.  This is a big one.. Do not stuff everything in the cupboards either.  Store the excess items somewhere else (like your mum’s house!!)
• Animals: Do not have any signs of animals living in your house.  This will put off 50% of you buyers straight away.  I personally couldn’t stand living in a house where dogs and cats have been. Especially if the house had carpet!!!!! I would be dreaming about fleas and cat hair everywhere (not to mention the underneath of the carpet where the pets may have urinated)
• Garden and fences: If you have a back yard, do not think that is doesn’t count. The backyard is just as important as the front.  Especially if the buyer has children or animals.  Secure fencing is a big plus for most people so make sure you fix any wholes or gaps.  Fences can be repaired easily with a bit of hard work.  Also make sure the lawns are mowed and tidy.  I found that everyone loves a garden – it can be small, in a large pot.  We all love the idea of growing our own herbs, vegies, etc it gives a peaceful, healthy feeling.
• Get an honest opinion: Get someone else to come into your house and give you an honest opinion.  Not the real-estate salesperson- get a close relative to give you the brutal truth from an outsider’s point of view.
• Give more information: Give the real-estate agent a brochure from the local council to give to any potential buyers. They usually show what facilities are available in the area… This can make a sale.  If they see there is a bus that picks you up on the corner, a school in the next block, a shopping center, or other attractions available this can be very helpful.  If you have a house in the middle of nowhere this can be valuable information.  If there are no books or brochures available, make your own list up (the local library is a great place to get these from as they usually have all the local papers, etc).

I would love to hear any tips you have on how to sell a house to make more money…I know there are loads out there..