Real Estate Miriam answers all.
Ask Real Estate
expert Miriam Engeln anything about properties in ARUBA, such as how to invest
in real estate, how to maximize occupancy in vacation properties, rental income
tips, constructing a house, home exchange, house flipping, retire-/ moving to ARUBA
and so on.
This week’s question
and answer:
Dora Onyulati: Are there any guidelines or suggestions you can give me as a First Time
Homebuyer?
Miriam Engeln; absolutely, here you go - Taking the step into homeownership is a big
deal. But before you buy, here are some things to do;
1. Assess your need. You
don’t want to be buying a home just because you turned 30 or because your
friends have started doing it. Determine whether it’s better for you to
buy or rent at this time in your life. Factor in your job and if it’s
stable, whether you plan to stay long-term or if you are itching to try
something new. Make sure you are buying a home because you want to and
you are ready at this time.
2. Do the math. Many
people focus on the down payment when they think about buying a home. Yes,
the down payment is usually a large chunk of money. But there are other
upfront costs you need to think about – taxes, property insurance, and closing
costs for example. Insurance rates and property taxes will vary per island
so you’ll want to check on what they would be. Closing costs encompass
many fees including originations, underwriting, appraisal, title insurance,
recording, and closing fees. It can add up to a surprisingly large
number, so it’s good to know it ahead of time.
3. Be ready. You’ll want
to have all your documents ready to make the process go smoothly. In most
cases you will need an ID, paystubs, and bank and asset statements. Some
of these documents would also have helped you to figure out how financially
ready you are to buy a home. For example, you want to make sure your
credit is in great shape before you try to get a mortgage.
4. Check out the
inventory. A house is likely the largest purchase you’ll ever make, so
treat it like other large purchases. That means you want to shop around
as you would for a car, TV, or couch. It may be time consuming but it’s
important to look at comparable homes in the area. Check out a variety of
options to not only find the right one for you but to get a feel for pricing in
the area. Working with a knowledgeable real estate agent can make this
part of the process much more enjoyable.
Email your real
estate questions to email address; mdengeln@yahoo.com and a selection of your questions will be answered
each Saturday in the newspaper Aruba Daily.
