Five things to consider when buying a property
A house is the biggest and the most expensive purchase you’ll ever make, so it is vital to plan carefully before you buy. Now, it’s important that you don’t get swept up in the excitement and forget key details to make sure you live happily ever after in your new home! These are the top five things to consider when buying a property.
Have a long-term plan
Relatively few experts forecast the end of the previous house boom in 2007, and no one can safely predict the future of house prices in the coming years either. Rushing into buying just because the market is in experiencing an upturn is a mistake, instead consider your long-term objectives and why you want to own a property. Consider buying a property where you can add value so if the market moves against the price you paid you, have the potential to make it back.
Add up all the costs
Buying a property can have a lot of hidden fees that you may not be aware of if you’re a first-time buyer. On top of the price of buying the house, you can typically factor in costs such as mortgage arrangement fees, which can cost around £1,000, and a valuation fee which is charged by your mortgage lender to carry out checks on the property. Other charges include legal fees, stamp duty and surveys. Don’t forget to save some money for furniture, internet and tv bundles and decorating your new home. Last but by no means least, don’t forget to look into insurance when buying a house!
Don’t borrow up to your maximum limit
Before you start searching for a house it’s important to have a chat with a mortgage advisor and find out how much you can borrow. Remember that just because a lender says you can borrow a certain amount it doesn’t mean it is wise to set your budget at the maximum amount.
Use online tools such as a budget planner to work out your repayments and figure out what would happen if mortgage rates increased in the future.
Use the Internet
The internet is a good place to research and hunt for new homes and the best mortgage deals, find out the previous property prices of your potential new home or the neighbouring ones, and check out your credit score. Online property portals are a great tool to use during your search but don’t rely solely on them – visit a few estate agents too. For instance, Lux Homes can offer exclusive listings and insights that may not be available online. The team at Lux Homes could help to ensure you have the best possible choices for your new home.
Check out the area in person
If you’re not local to the area ensure you spend plenty of time checking it out before putting in an offer on a property. Talk to the neighbours, visit the local shops and pubs, and go back and visit the property and the area at different times of the day to get a better feel for what it is like. If you have children visit the local schools and parks or other community facilities to ensure they are what you are looking for. For more advice on schools in your area use the government’s school performance tables to get a better idea.
