Luther Ragsdale’s 5 obligatory steps when buying your first property
Luther Ragsdale, a real estate coach from Vinings, Georgia presents you the five obligatory steps that you should never skip when buying your first property. This also includes a prior investigation on the taxes that you must pay for the property, the cost of public and private services, as well as the characteristics of the areas where you intend to buy.
1. Check how much you can pay
It is important that you check how much money you have in your savings account, as well as your annual income. As Luther Ragsdale states in his video seminars, knowing how much you have stored in the bank will let you know how much you can give for the initial payment, as well as the amount you have to pay for some procedures and services such as the deed, the real estate agent and the notary, among others.
Knowing how much your annual income goes up, on the other hand, will allow you to have a clear picture of what you can spend, without turning your personal finances upside down. The specialists recommend that for the payment of the mortgage or the real estate credit you do not destine more than 30% of your net income.
2. Accompanied or alone?
When you live inside a subdivision or a group of apartments with other condominium owners you have fewer worries: someone else takes care of the maintenance and takes care that everything is in order. However, you must pay an additional cost to your fixed expenses, and most often other people are those who determine how certain common areas should be used.
On the other hand, not living in a condominium gives you greater independence. You decide how and when to improve and maintain your property. However, in Luther Ragsdale's opinion, you must have in mind that all expenses will be paid by you, and you will have much less free time, because the care of an apartment or a house requires time.
3. Find good advice
This involves a real estate agent (or real estate coach), a financial adviser and a lawyer. The real estate agent will help you find the property that best suits your needs and your budget. Needless to say, neither he nor anyone should pressure you to make a purchase if you are not entirely sure. You have the right to ask everything you want and and as often you want.
A financial advisor will bring you the greatest support when approaching mortgage and credit institutions, whether public or private, in order to finance your future home. On the other hand, the lawyer will be your ally when signing the purchase-sale contract and will review the legal details when you perform the deed.
4. New or old
Both new and old properties have their advantages and disadvantages; everything will depend on what you look for and how much you inform yourself. Generally the new houses and apartments are in good condition, but Luther Ragsdale recommends you to get to know other projects of the particular developer, as well as the inhabitants of these properties and the after-sales service.
Besides, second-hand properties imply other types of requirements. One of them is to verify the conditions of the property and, if they are not optimal, you can take advantage of it and negotiate the final price. Also, Mr. Ragsdale advises you to check that the payment of taxes and services is in order, the same with the legal status of property deeds.
5. A little bit of everything
Yes, there is still more, but really, the purchase of your first property is something that deserves your full attention. As mainteined by Mr. Ragsdale, a testament is something you should consider even if you have not finished the payment of your property. With it you will determine who will inherit the property and the disposition, not only of your properties, but of your investments, actions and others.
Luther Ragsdale also recommends securing your new home. It is cheaper compared to the final cost that you will have to pay in case of a natural disaster. Do not discard life or disability insurance, if for some reason, the person(s) paying the mortgage has some mishap. But above all, give yourself some time to enjoy the purchase of your first property, seriously.
