Buying a house or flat is an extremely important investment that should not be taken lightly. For most people, a step onto or a move up the property ladder will represent the most expensive purchase of their lifetime. It is therefore a decision worth taking plenty of time over and one that needs to take a wide variety of factors into consideration. There are several ways in which to go about purchasing a home but, whatever your circumstance, these five tips should come in useful during the process.
1. What can you afford?
Far too often, people land themselves in financial hot water by overreaching in their ambitions to own a property and find themselves saddled with unmanageable payments and irrecoverable debts. Before you even start viewing potential new living quarters, work out how much, and even if, you can afford to spend on the home. It is essential that sensible financing, rather than an overwhelming sense of property lust, dictates the process. Factor in all the hidden costs and consider any changes in circumstances you may have over the course of repayment, this could include a new baby, university payments or even redundancy.
2. Find a property
Once the amount you have available has been decided upon, it's time to start the exciting, if sometimes arduous, process of hunting for a home. One tip is to immediately limit your search to properties within your budget to save time and avoid temptation. Even those just a fraction over ought to be ignored and it's also worth remembering you don't need to spend the maximum. Investigating property price trends can help you get a feel for the market; the Internet contains a wealth of information on this. Also remember that asking prices are often somewhat optimistic and represent what the seller wants for the property, rather than what they are likely to get.
3. Ask questions
When viewing a potential home, it’s important not to fall into the all-too-British trap of not wishing to come across as rude. Movements both onto and up the property ladder are best undertaken while maintaining a healthy dose of scepticism. Double check any claims made and do everything you can to get as much of the process as possible in writing.
Initial questions should cover the number of viewings and offers a property has had, the length of time it has been on the market, current electrical and gas installation checks and reports, the age of the boiler, any renovations that have been undertaken and details of any neighbour disputes.
4. Thoroughly research a mortgage
The vast majority of home buyers simply do not have the money to purchase their property outright. Instead, they take out a mortgage. As doing so represents a huge investment, it is crucial that you take the time to research the market and find the right deal for you. Loan comparison sites can do a significant amount of the hard work for you as you can search efficiently through a variety of lenders to find the arrangement that best suits your specifications and circumstances.
5. Setting up the home
So, you're almost there; you can see light at the end of the tunnel and envisage yourself settling in to your new surroundings. Don't, however, allow your enthusiasm for getting into the new place cloud your judgement or let any key queries fall by the wayside. Basic, yet essential, things to discover before you are left to fend for yourself include the location of the gas and electricity meters, the thermostat and the stopcock. Furthermore, detailed knowledge of home phone and broadband suppliers and any surfaces that require special cleaning products can save both time and money.
Moving house is one of the most stressful decisions you can undertake in life. Following these simple tips, however, can help make the experience as pain free and, more importantly, fiscally prudent as possible.
