The house is one of the primary needs that must be owned. It’s just that the price, which is many times the salary, makes many people consider many things to buy residential property. So tips on buying a house should be known, especially for those who are doing it for the first time.
Buying a new or used house does require a strategy/consideration so that there are no regrets in the future. Not to mention the different payment methods, both in cash and credit.
In addition, every year house prices continue to increase even in the era of the new corona virus pandemic. So you have to know what house needs to buy, whether it’s a mortgage house, a used house, or building a house from scratch. So that you are not curious, Qoala has summarized some tips for buying a new home, mortgage, or used that you should consider.
Tips for buying a new house
For families who are young/new, they will usually be a bit confused about buying a house because there are many developers who provide types of houses and competitive prices. So that you are not curious, you can follow the tips for buying a house for young couples below.
1. Pay attention to family needs
Tips for buying a house with cash / credit first, you have to know what needs are needed from a place to live. You can discuss with your family some of these issues:
- How many rooms are needed?
- Will it be renovated in the future?
- Is it necessary to have a large garden?
- Do you need a car garage?
If you have found the answers above, it will be easier for you to buy a house in Jakarta or outside the capital according to your needs and tips. You can also use the notes as a reference for sorting your future residences and your family.
2. Use a real estate agent or find your own
Now buying a house can be through a property site and the method is even easier. You have the flexibility to search, compare, and directly contact the homeowner from the advertisements displayed on the site.
If you want to find your own home, you must have enough time to do everything. In addition, you can also ask for the services of a property agent to find your dream home according to your wishes. It’s just that you need to prepare a commission to pay the property agent fee .
3. Location and access to your dream house
One of the determining factors worth considering is location. This factor is also related to access and housing prices. A house located in the center of the city certainly makes it easier for residents to travel everywhere. Only the price of land will certainly be very expensive so that prospective buyers need time to save longer.
While houses on the outskirts of the city are cheaper, it’s just that it takes more time to travel to the city center. The solution, you can find a house in a suburban area that is easily accessible by public transportation if the budget is limited. Buying a house close to the station, terminal, and bus stop, is a tip that you shouldn’t miss because buying is a plus.
4. Pay attention to the residential environment
Tips for buying a house in Jakarta or other areas, by paying attention and finding out more about the condition of the surrounding environment. You need to make sure that the house is flood-free or in a healthy area.
So when it rains, you won’t have to worry about evacuating or saving valuables. In addition, make sure that the environment must also be safe from cases of theft, brawls between residents, robberies, and other bad things.
5. Facilities around the house
You must know that a comfortable home is certainly close to various facilities and amenities. For example supermarkets, ATM machines, and hospitals, are facilities that are available near the house. Even better if the house is close to restaurants, malls, or favorite places of entertainment. So you have to know what facilities are around before buying the house. These buying tips apply to all types of houses, even in complex housing.
6. Reasonable price and choose the appropriate payment scheme
The thing that must be considered when buying a new or second home is to conduct a survey to several places with the same price. The goal is that you can compare which house is the most suitable for your financial situation .
In addition to price considerations, the choice of payment scheme is no less important, especially if you want to take a mortgage home. Just a note, if you buy a house using a mortgage, it means that the total price to be paid will soar from the cash purchase price.
7. Specifications of house building materials
Many people are indifferent to the type of material used to build a house. In fact, this is a crucial factor to know. You can see the various considerations below:
- A house with brick walls is stronger than just using bricks
- Floors with concrete slabs are more durable than floors that are only cemented and in ordinary ceramics
- Light steel roof truss is better than wooden truss
- Considering the above, you have to ask about the materials used to build the building, according to the concept and budget of course.
8. Design the house as you wish
The shape of the house certainly reflects the personality of the owner. If necessary, you can look for a house whose design suits your taste and family. People who have an open soul usually like a house with lots of windows and glass walls.
In addition, many also like houses with semi-traditional designs. People who have more budget will usually hire the services of an architect to make sure the house design matches their personality.
If you buy a house through a developer, you can choose the renovation option. Now there are many developers who give the owner the freedom to do custom home designs.
9. Potential Home Changes in the Future
Buying a house is like making a long-term investment. You have to imagine what was done to the house. You can consider the following things:
- Are you going to sell in the near future and then buy a house in another city?
- Would you add a few more rooms if you had kids?
- Or do you intend to take care of it for life and pass it on to your children?
- You should consider these tips for buying a house and prepare it so that it won’t be a hassle in the future.
10. Home Health
A healthy home must certainly support the health of you and your family. Here are some things you should consider:
- Waste treatment and drainage system
- The presence of adequate ventilation and windows so that fresh air and sunlight can enter properly
- The surrounding environment is always kept clean and not shabby
- Most people who are buying a home for the first time will be excited even to the point of ignoring the basic tips.
- That’s natural, but don’t be so blind that you regret buying a house.
Tips for buying a home mortgage
Not everyone has the experience of buying a cash house because it is difficult to collect hundreds of millions or even billions of money. One reliable solution is to apply for a mortgage loan so that you can pay in installments or repay each month. Here are tips for buying a home mortgage or home ownership loan that you should understand:
1. Understand your financial capabilities
The credit institution or bank will give you a good score if you pay the installments correctly. But before submitting, you can estimate whether you are eligible to pay for the house installments.
You do this by knowing the ratio of debt to your own assets. The value of the debt-to-asset ratio shows how much of your assets are financed by debt. You can calculate it by dividing total debt and total assets and then you can get a score for this ratio. The ideal value of the ratio is below 50%.
If the value is more than 50%, it means: the value of your debt has exceeded the asset value. This shows financial health, so you must correct this ratio before applying for a mortgage.
2. Don’t go into debt if you don’t have an emergency fund
You have to secure an emergency fund and ideally, an emergency fund of 3 to 6 times your monthly expenses. The more dependents means or the higher the risk of your work, the greater the need for emergency funds.
3. Invest funds for a house down payment
You have to determine when to buy a house and pay the down payment (DP). In addition, determine the costs for other expenses and set aside money regularly in investment instruments. If you are targeting to buy a house in the next one to three years, you can save your home purchase savings funds in low-risk investment instruments and have fixed returns.
In addition, you should avoid placing funds in high-yield and high-risk instruments because your saving period tends to be short. Market risk in the near future can affect your investment returns. Interested in trying these home mortgage buying tips?
4. House installments per month do not exceed 35% of income
Credit institutions or banks may approve mortgage applications with a nominal installment of 50% of monthly income. But you must know that the ideal maximum mortgage is 35% of income. The reason is, so that you don’t need to reduce expenses for daily basic needs, insurance , to investments to be allocated into installments.
5. The family must remain secure
Death can happen to anyone, including people who are repaying the house. Of course we do not want to leave a legacy in the form of debt to our beloved family. Therefore, if you have debt, you must be protected with life insurance.
Usually every KPR is equipped with life insurance contributions to prevent the risk of the debtor’s death. Life insurance has various benefits, not only useful for paying off debtor’s inheritance, but also for living expenses for the family left behind.
You can choose insurance with a sum assured that can cover your credit ceiling. In addition, you can also choose insurance that provides the sum assured at least twice of the total outstanding debt you have. When it comes to protection, you can find the best life insurance in Qoala.
6. Not in a hurry to speed up repayments
Tips for buying the next mortgage house by not rushing to speed up repayments. The goal is that you don’t get charged for an early repayment penalty that will appear. Unless you apply for a sharia mortgage.
Paying off installments early not only forces you to spend more money, but also makes you short of current assets or liquidity. One of the considerations of financial health, the ideal amount of current assets (cash or cash equivalents) is 15% to 20% of total net worth.
Of course the existence of a new house will increase the value of your assets which will affect the value of your net worth (total assets-total debt). The higher your net worth, the greater the current assets you must have.
Tips for buying a used house
Buying a used house is not as easy as it seems because it requires its own strategy and tips. The goal is not to regret buying a house because the loss is not only in the form of millions of rupiah, but also the comfort of the family. Here are tips for buying a used house with hard cash or credit .
1. Buy a house from the first hand
You should know that the best way to buy a used house is directly with the owner himself, aka without intermediaries. Because you can get detailed information about the house you want to buy. By buying it directly, the price is also cheaper because the seller does not have to pay a commission to the middleman or broker.
2. Choose the right intermediary or broker
If you are forced to buy a house through the services of a broker, you can choose a trusted broker. You can request a property broker reference from the relationship. If that’s not possible, you can use the services of a well-known property broker who already has good credibility. The broker will assist in the process of processing house purchase documents, including when applying for a mortgage if you plan to buy a house in installments at the bank.
3. Ask the age of the house
Tips for buying a used house so as not to be fooled further, by grouping the age of the house building. Starting from new (less than 10 years), medium (10 to 20 years) and old (more than 20 years). Ask also ask when was the last time renovation was done if ever.
Of course the above is not a standard benchmark because there are various other factors such as the type of structure, the quality of the building materials, and the quality of the workmanship of the house. It’s just that you have to know that the older the building is, the lower its performance will be. That means you have to be prepared to budget funds to renovate the house.
4. Home location
Like buying a new house, these tips also apply to an old house. The location of the house greatly determines all aspects of your life and that of your family. You can consider the following things:
The existence of transportation access from the location of the house to be purchased with the workplace or business
If possible, avoid traffic jams (If in Jabodetabek almost all places are jammed)
Check the location of the house several times to calculate the time and distance traveled
5. Check the physical condition of the house
The strategy to buy a used house that should not be missed is of course checking in detail the physical condition of the house in each of its parts. If necessary, you make a checklist to make it easier when conducting an inspection. Even better if you invite a contractor to assess the current condition of the house. Consider the following:
- The condition of the structure of the house, is there a carriage in the foundation, walls, columns, and beams
- Check for spots of groundwater seepage on the walls
- Is the quality of the floor still good or has it decreased or cracked?
- Check the condition of the frames, windows, doors, ceilings, maybe there are marks of termite attack
- Make sure that the roof structure is still in good condition. Look, maybe there is a porous beam/curtain, or there is a serious leak in the gutter
Don’t forget to also check the condition of the PLN electricity network at home, is it still good or is in disarray
Is the water quality still decent? Also check the water network whether it is still in good condition
Don’t forget to feel the room, is it fresh, damp, or does it feel stifling?
6. Check the environment around the house
As a prospective occupant of the house, you must have information about the conditions of the surrounding environment, especially if the house is going to be occupied with your family. Don’t let you regret buying the house because it turns out that the location is difficult to access, far from educational facilities, prone to crime, or often flooded.
7. Check the house documents
Tips for buying a used house are certainly very important because they are related to legality. You have to check the authenticity of the house certificate (SHM), the building permit certificate (IMB), proof of the building land tax (PBB), and cross-check all of these documents.
If the name listed on the document is not the same as the name of the seller of the house, you can ask the status of the relationship. If the name transfer process has not been carried out, you can request a valid Sale and Purchase Deed for the house.
You can ask how many legal heirs there are if the house is an inheritance. This point should be underlined so that there are no disputes and so on.
8. Check prices
Don’t forget to be diligent in checking information about the market price of land and houses around the location of the house. So you can make an offer in a reasonable price range. This is important if you want to buy the house and then sell it again.
9. Pay attention to the water source
A person needs about 10 gallons of clean water for daily activities. Good for consumption, bathing, cleaning the house, washing clothes and dishes, cars, and much more. Given the vitality of water, you have to think about the source of water and its supply before buying a house, whether it’s a new or used house.
You have to check the nearest water source from your prospective home and make sure this water source drains clean water that is suitable for daily use and consumption. A good location for a pump or artesian well is at least 10 m from the septic tank at home.
If the distance is less than 10 meters, it is likely that the water is not suitable for use because it is contaminated with soil and toilet waste.
In addition, if the former house uses a PAM-type water source, make sure the homeowner does not have a water bill problem.
10. Pay attention to electricity availability
These tips for buying a used house are no less important than the points above. You have to check the electrical power in the house, is it enough to meet all electronic equipment if you plan to install enough electronics. If it’s not enough, you can add power online via the PLN website. Also make sure the cable installation is in good condition to avoid an electrical short.
11. Take a week to finalize your choice
You can take a minimum of seven days to decide to buy a house. The goal is to be more convincing before making an offer. It’s possible that there are various aspects that you missed and you can detail them again. Remember, you have to think carefully because you will live there for maybe 20-30 years.
The importance of using property insurance
Buying a house certainly has risks because it costs a lot and many people buy it in the long run. One of the risks that haunt long-term credit financing is death. Leaving home mortgage debt to the family is also not a good action because it will increase the financial burden.
One solution that should be considered to prevent the worst is property insurance. This insurance has various functions to ensure the safety of house assets and their contents as well as replace damaged or lost buildings and properties. One of the best insurance providers that you can consider is Qoala . The cost of Qoala insurance premiums is relatively affordable and can certainly provide a sense of security for your home assets.
Those are 27 tips for buying a new, used, or complete mortgage that you can consider. Each type of house that you want to buy certainly has different tips. Hopefully the tips on buying a house above can be useful for you.