Things You Need To Know Before Buying A Home

Buying a home is an exciting time, whether it’s your first or your tenth! Approximately 12% of new housing finance is for first time buyers and these are the category that is most at risk for making serious and expensive blunders.

Of course, anyone can make a mistake when looking to buy their next home, the excitement of the moment can often overtake precaution and common sense. This is why it is essential to have a building defects report completed before you buy any home.

Is It Worthwhile?

Paying a mortgage is generally cheaper than renting. However, there are other costs to consider such as maintenance and decoration. These can add up and wipe out any additional value you gain in your home.

If you think you’ll be selling again in less than 5 years you’re unlikely to benefit much from your first home. Of course, it will help you to climb the property ladder.

Projects

A good defect report will highlight all the issues within your new home, whether it’s a project home or a recent build.

However, the mistake that most buyers make is underestimating the cost of repairing these faults. Whatever figure you’ve thought of double it, and then ask yourself if you can really afford it.

The Neighborhood

You might think you’ve found a bargain as the house is much cheaper than others like it. In this case, you need to investigate more. While there might be a genuine reason for this you could also be about to purchase a home in a bad neighborhood; you might not enjoying living there and may even struggle to sell your home.

Assess The Home

The house might look great but is it practical for your work and social life. Is it suitable to adapt for children, if they’re on the agenda? If you already have children do you have the facilities you need on your doorstep, schools, and shops.

It can be difficult to turn down a dream home that is in the wrong place but it is the right thing to do. The practicalities of living must be considered.

Down Payment

You need to have a deposit to secure your home and get the best possible mortgage deal. It is possible to get onto the ladder without a deposit but your options will be severely limited and your finance deal will not be as good as you would like.

This is also a good opportunity to get your finances in order, the less credit you have the better the mortgage offer you’ll receive.

Check the Environment

Some areas are prone to flooding or subsidence. It is important to check the environment around your new home and the history of the area; you don’t want any unpleasant surprises just after you’ve moved in.

Over Stretching

It’s tempting to purchase the most expensive house you can afford. However, this will probably leave you with no funds left to cover emergencies. It is better financially to choose a house a little under budget; this will allow you to continue living comfortably.

Take your time when choosing your new home; it’s a long-term commitment!