There is a lot of excitement that comes along with your first property purchase. You will no longer have to pay rent or change homes when the lease ends. But excitement is not all that you may experience in this process.
It can also seem to be a daunting task and you may need the right advice before you can finalise the house you will be moving into. For this reason, we have put together some tips that first time buyers may find helpful when taking this big step:
Evaluate your Circumstances
Buying a house is a big decision, a long term commitment and possibly the most expensive purchase that you will make in your lifetime. Each time you are about to take a long term financial decision it is important that you carefully consider your future circumstances.
Most property buyers get tempted to buy a property when the property prices dip. But before you decide to stop throwing your hard earned money down the rent hole and use it to purchase a property instead, there are some questions that you must ask yourself.
These questions should give you a clear picture of your financial health and these include:
- Are you confident that your employment status will not change in the near future?
- Do you believe there is a possibility that you may have relocate to a different location?
- Are you financially sound to make an investment of this nature?
If you are planning to start a family anytime soon you may have to select a property that suits your future circumstances and a location that will be most suitable to raising a family.
Make Sure you Have a Financial Plan in Place
The price tag on a home is not the only amount that you may have to spend. Buying a house comes with several other expenses such as renovation and other mandatory expenses such as deposit for mortgage, removal fees, valuation fees, storage costs, mortgage fees, surveyor’s fees, stamp duty land tax (for properties whose value is greater than £125,000) etc. You must have the necessary funds in place to cover these expenses or your budget may run into the floor before you even have the house keys.
Choose the Location Carefully
It is quite likely that you have only visited the location of your prospective home during the weekends. But places tend to have a different air about them in the weekends which can be quite different from what they appear during the week.
Take some time off and visit the surrounding areas during the weekdays. You should also visit the local shops and restaurants to see if they suit your needs as you will be living in the vicinity for a long time once you purchase the property.
You should also be on the lookout for the developments that are taking place around the property you have shortlisted. If there are going to be major constructions around the house in the near future it is quite possible that the valuation of your property may sky rocket in the times ahead.
You should also take into consideration your personal preferences. If there is a big retail project coming up but you are not very comfortable residing in a location with a lot of hustle bustle you shouldn’t purchase the property.
Conducting a Property Survey
Most people are under the impression that they do not need to get a property surveyed. However, it is a common practice amongst property sellers to provide false information about the house and cover up the weak spots before pitching it to a prospective customer.
The three types of survey that provide extensive information on the house are Condition Survey, Home Buyers Survey and Building Survey.
It is a basic survey and gives an overview of the property’s condition. It does go into great detail about the property but highlights the significant issues. Such a survey is suitable if you are buying a new property.
Home Buyer’s Survey:
This report goes into greater details of the property compared to a condition report. It brings to our attention any major issue and also provides the advice on the ongoing maintenance and the necessary repairs. It also provides information regarding which building regulation is not being met by your property.
It is the most detailed inspection of your property and highly recommended if the property in question is more than 50 years old. A comprehensive analysis of the property’s condition and structure is provided in this report.
An investment which requires you to spend so much money should be made only after carefully considering each factor involved. If you have purchased the property, you may want to protect it by writing a Will using a free Will kit that can be easily found on the internet.