TIPS FOR BUYING A FIRST HOME
Even though he already has sufficient funds, in fact buying a house is still not an easy matter. Why is that? Yes, considering that the house is a large expense and also a long-term investment asset, we cannot be careless, and must be careful to consider everything carefully. Initially it will be ‘complicated’ and time-consuming in planning to buy a house, but believe me all of that will definitely pay off when later you and your little family will be able to live in the house you’ve been dreaming of.
To answer this, here are tips on buying the first house for young families:
1. Plan a budget
Yes, housing for all family members does require a lot of funds. Therefore, we need to plan in advance the budget and the capacity to pay for each. This is done so that the decision to buy a house does not burden the financial condition to meet basic needs, as well as other pre-existing needs. For information, banks usually require monthly mortgage installments of a maximum of 30% of personal net income or a combination of husband and wife. You can make this a benchmark for your ability to pay, provided that you and your partner don’t have any other debts.
2. Get to know the ins and outs of home payments
After planning a budget for buying a house, then you need to recognize the ins and outs of the payment. This is important, so that you understand the costs and commitments required to buy a house. As proof of seriousness, there are 2 types of fees that need to be paid, including:
Booking fee – is a payment in the form of a sum of money as a commitment to book a certain property unit. For the amount of the fee, the booking fee does not have a definite standard, and varies in each type of residence and property developer.
Money Signs So or Down Payment (DP) – as well as a booking fee , DP is a form of evidence of the seriousness of ordering the desired house. In addition, down payment is also used to tie the previously agreed price between the seller and the buyer of the property. The amount of the fee varies, generally starting from 10%, depending on the ongoing promo from the bank or property developer. In order not to be burdened with down payment, you can choose a bank or property developer that has a home purchase credit relief program.
People’s Ownership Credit (KPR) – is a financing product for home buyers with a financing scheme of up to 90% of the house price. In this system, we will pay the house in installments every month to the bank. The length of the installments or tenors varies, and can be adjusted according to the ability to pay each. To apply for a KPR, there are standard conditions that must be met including age <50 years when applying for a KPR, photocopy of KTP, marriage or divorce certificate, family card, certificate of Indonesian citizens (for Indonesian citizens of descent), and documents related to the house used as collateral (SHM, IMB, PBB).
Hard Cash or Cash Loud – is a payment system that is made no later than one month after an agreement between the buyer and the developer. This pay system has many advantages, because usually the developer will provide a lucrative discount on the house price (usually around 10-15%). In addition, another advantage is that we don’t need to think about the monthly installment burden, or the fluctuations in loan interest rates that often soar as in the mortgage payment system.
Gradual Cash or Cash Installment – if previously the KPR was an installment to the bank, then Cash Installment is an installment within a period of 6-24 months that is paid directly to the developer. This payment system is quite effective because the installments will not be affected by bank interest fluctuations. However, you also need to know that in this system the buyer is required to submit a down payment which tends to be greater or around 30-50% of the house price, depending on the developer’s policy.
3. Determine the Location
Now, if you understand the two basic things beforehand, then you can start determining the location of the house you want. Determination of this location can be considered based on various aspects, ranging from considerations of locations that are not prone to flooding, easy and strategic access, as well as considerations of water conditions, land shape, to the size of the budget owned. You need inspection service to check like this company eastsidehomeinspectors.com
4. Select a property developer or trusted developer
The next stage is to choose a house based on the developer. Make sure the developer or developer chosen is a trusted party. This can be ascertained by digging up information about the previous project’s track record , does the developer have any problems or irregularities in residential projects that have been built? If there are no problems, then you can choose residential products from the developer . But, don’t forget to make sure again that the residential product for the developer you choose has a price range that matches the budget you have.
5. Determine the type of house
Property developers generally have several residential products with different types of land and building areas. For example, the types of houses that are now quite popular are type 36, 45, 60, and also type 70. To determine the type of house you want, you can check the home products provided by the developer of your choice, and determine it based on your budget . In determining this type of house, make sure you don’t force the desire to have a dream house. As an option to stay on budget , you can choose a house with a growing house concept that allows it to be built or renovated at a later date.
6. Ensure No Bad Credit
If you want to buy a house in installments, then make sure that you or your partner don’t have bad credit payments. If someone has bad credit, it will be more difficult to get a KPR loan approval from a bank. This happens because the bank considers your ability and compliance in paying installments. In addition, the bank will usually also take into account the amount of debt and current installments with your income each month, and also a track record of bad credit if you have experienced it before.
