Many people buy more than one home in their lifetime. There are as many reasons to move to a new home as there are homeowners. On their second or third time around, homeowners often have a clear idea of what they would do differently if they were to buy a new home today. CEO of Nordea Mortgage Bank Jussi Pajala shares his tips for buying a home.
“We bought an old house a little over 10 years ago. The basic things were there but we needed to do a few major renovations.
When we bought the home, we didn’t budget for a home improvement loan but rather applied for it once we started the renovation projects. We have also made smaller improvements and touch-ups here and there over the years, and there are still a few places that need a little work. Once you finish one project, you often find another spot that needs some tender loving care. A decade ago, the cladding was fine but as time goes by everything in a house wears out and requires maintenance.
If I was to buy a new home today, I wouldn’t buy an old house despite their charm. I now understand how easy it would be to live in a relatively new home that you don’t constantly need to renovate. These years have, of course, taught us a lot about home improvements, and doing a kitchen upgrade sounds like a piece of cake at this point.” Tuulikki, 42
“When you’re buying a detached house, it’s good to keep in mind that you won’t have a property manager or a maintenance company to rely on if you have issues with the property. As the buyer, you are solely responsible for the maintenance of your house. Although old houses generally need more renovations than newer ones, you won’t be able to avoid repairs in a new house, either, down the line. If you live in the same home for 30 years, you’ll eventually end up having to upgrade it.
You should budget for improvements and repairs before you buy a home because replacing roofs or windows or upgrading the exterior are all major renovations. It’s good to be aware of the type of renovation needs you’ll be faced with in the future.
And since the home is used as collateral for your home loan, your bank also expects you to take care of routine maintenance to ensure your property remains in good condition. If your house is in need of repairs, you should provide your bank with a realistic calculation of your renovation budget.”
“I bought my first home close to downtown Helsinki. It was a one-bedroom apartment with a smart layout, which only needed minor refurbishments. I had a job in downtown Helsinki and it was important to me to be able to get to my workplace by public transport. My commute took surprisingly long, however, since I had to take both a bus and a tram. Sometimes it was quicker just to cycle to work.
Since then, I've moved out to Espoo but if I was to buy a new home today, I’d carefully consider the public transport links and the length of my commute. Espoo is much further away from my workplace but I can get there nearly as fast.
If someone is thinking about buying a home, I always urge them to consider whether the location is right for them.” Päivi, 36
“Whether it’s about commuting to work, taking your children to their hobbies or visiting your parents living nearby, you should think about how you’re generally going to get around – either by public transport or some other means. If your day-to-day life becomes inconvenient, you won’t enjoy living in your new home, either.
You should also think about the resale value of your home. Homes in popular locations often have good transport links. On the other hand, many people appreciate living in a quieter area where transport links are a fairly short walking distance away.
It’s about personal preferences, so there’s no right or wrong answer as to what is the perfect location. Some people may want to be close to nature and choose a more remote location despite the fact that the home could be more difficult to sell in the future.”
“We bought a house next to a forest since we wanted to be close to nature. Five years later, the city decided to cut down the forest and the view from our house changed completely. Now we can hear the noise from a nearby highway.
If I was to buy a house or an apartment today, I would find out everything I could about the neighbourhood and any future building plans concerning it. I would investigate who owns the forests and plots surrounding the home and what their future plans are. A neighbourhood can change drastically in just a few years.” Esa, 45
“Planning decisions, including the appeal process, take years. This means that buyers can look up the zoning plans and building rights for the neighbourhood and find out who owns the land. This information is available in the register of the National Land Survey of Finland for a small fee.
You can also call the owner of the plot next to your potential new home and ask them about their plans regarding the plot. Once you are aware of any future development plans, it’s easier to make a well-informed decision. Of course the world is always changing, and it’s impossible to predict everything that will happen in the long run. But it requires little effort to find out the changes that are planned for the near future.”
“My spouse and I bought a two-bedroom home with 73 square metres. It’s a two-storey terraced house. After visiting my friends’ homes, which have less square metres, I’ve been surprised to see how big a small home can feel.
I’ve noticed that the layout of the home makes a huge difference. Our two-bedroom home has wasted space in the hallways and staircase.” Jukka, 33
“Narrow spaces, such as hallways or staircases, are often wasted spaces. It’s also good to have an adaptable layout where you can arrange your furniture in more than one way.
Jussi Pajala says that emotions usually play a part in buying a home.
“Buying a home is often an emotional decision – people get caught up in pursuing their dream home and may sometimes forget about facts and realism. Before you start your home buying journey, it’s a good idea to sit down and consider all the different aspects. What is important to me when buying a home? What if I switch jobs or my family situation changes?
You should go see a wide range of homes and think about how they would work with your lifestyle.
Once you’ve done your homework, you can make a decision that is not just based on you falling in love with a property. You might not be able to find a home that ticks all the boxes but having considered every aspect in a systematic way ensures that you won’t be faced with any big surprises after buying the home.”
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