Buying a Home
Are you looking at buying your own home in Vanuatu? Purchasing your first house can be a difficult decision. It can take a lot of time to research, compare and choose the right property. What important factors should you consider when looking at the Vanuatu real estate market? Consider the advice below:
Knowledge is vital. Start researching!
Start with building up your real estate knowledge base. Read, read, read and read some more! Find professional advice from online and print sources. Research the market and compare house features/pricing of different areas. Take note of how long the different listings stay on the market. These factors will give you an idea of real estate trends.
Determine a price
How much can you afford for your new home? This can be a difficult question sometimes. In general, lenders advise that your price range should be no more than 3 to 5 times your yearly income if you make a 20% down payment. However, since every financial situation is different you should crunch the numbers and determine your budget. Talk to your mortgage broker to determine the final figures. After providing your financial information they will be able to tell you how much you can borrow.
Choose the right agent
The Vanuatu real estate agent you choose will be your guide to conquering the real estate jungle. They know the neighbourhoods, the homes and people better then the average person. So take advantage of their market knowledge, prepare some questions and use their negotiating skills when choosing your property.
Inspect like you are shopping
When you begin looking at houses be a studious buyer. Take notes, pictures and videos of each house. Write a checklist of pros and cons. These will be helpful for later when you way up all your options. Here are some checks you may want to make:
For the area:
- Is this a good neighbourhood? What is the condition of the surrounding houses?
- Is the house in a convenient location? Close to public transport, shops, schools etc
- What’s the traffic like? Do you have adequate parking space?
For the House:
- Test the plumbing, taps, shower, drainage and hot water system
- Check the electrical – lights, wiring, fans, air conditioning, appliances, and cyclone shutters
- Open doors and windows
Never rush an inspection. This will help you to catch every detail. Once you’ve come to a decision, compare pricing with other properties in the area and negotiate with the buyer.
Select your home loan
Often times there are a number of different home loan options available. Determine what your current priorities are along with your future goals. Will you be settled for an extended period or expect to move again in a few years? Do you prefer lower monthly payments or a fixed rate? These are all questions that you should consider.
Get an appraisal
Perhaps you might be interested in getting an independent party to provide an evaluation. This will assist in determining the real-world value of the home and advise you as to whether you are paying a reasonable price.
It’s time to sort the paperwork
There can be a lot involved in purchasing a house. But it’s important to get it right to ensure the transaction is smooth. The agent and lender will make arrangements to handle this for you. However, don’t be afraid to ask questions so you fully understand the process. Once you sign the final paperwork, the sale will be closed and your loan should be funded in a few days. Then it’s time to move in!