Dear Heather —

I’m tired of throwing my money away on rent, I want to buy my own home, but I’m not sure if now is the right time? And on an economic level I’m not sure if I can afford all of the expenses that come with having a mortgage!

Hesitant, Paget

Dear Hesitant —

For most people, buying a home is the most significant investment of their lives. And in spite of the doubt and confusion clouding both the financial markets and news headlines, there are many genuine real estate opportunities, especially for first-time buyers. On average, housing inventory is good, prices are lower, but stable and historical data demonstrates that purchasing a home has proven a sound, long-term financial investment. However, first-time homebuyers are often understandably anxious when it comes time to making the purchase.

Check through the following helpful list:

Get preapproved by your loan officer. Why? Because they will let you know your financial parameters so that you don’t over extend yourself. They will let you know what you can afford, and being preapproved puts you in the best position to make an offer, and move forward quickly.

Define your needs versus your wants: if you are buying your first home it is likely you will have to compromise something on your wish list. Making a list of needs versus wants before starting the process can make it less overwhelming.

Be an informed buyer: check with your real estate agent on zoning restrictions or condo rules and regulations for the property you hope to buy. If you are unsure of the neighbourhood take a walk or drive by after 5pm or at the weekend.

Are you purchasing a property for $750k or under? If you are Bermudian, or Bermudian with a non Bermudian spouse. You should know that the Government of Bermuda offers exemption from payment of stamp duty on the conveyance of the property you purchase, which can save you as much as $12,000 on your transaction.

Work with a real estate agent: an agent can help guide you through the process step by step, offer advice and support, educate you about the process, and if you’re a buyer, it’s free, as it is the seller who pays the commission.

Do what’s right for you: if you are planning on staying in your home for a decade or more, short term fluctuations in the house’s underlying value shouldn’t make a difference. After all, the purpose of your own home is to provide you with shelter, security, pride of ownership, independence, stability, a solid tangible asset you can live in, a community and an improved quality of life. At the end of the day purchasing a home is your investment towards moving yourself to a better future.

Happy House Hunting!

Heather Chilvers is among Coldwell Banker Bermuda Realty’s Leading Sales Representatives. She has been working in Real Estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332 1793. All questions will be treated confidentially.