Admittedly, there are far more than just five things you need to consider when buying a home. After all, this will no doubt be the single biggest and most important thing you purchase in your lifetime. That said, there are some considerations that will always be significantly more important than others. Not to mention, are all-too often overlooked in terms of their significance.
So with this in mind, here’s a brief roundup of five of the most important things to consider when buying a property:
Total Buying Costs
First and foremost, never fall into the trap of assuming that the cost of the property represents the total sum of money you’ll be expected to pay. Typically, you’ll need to add around 10% to 15% onto the total property costs in fees, charges, legal expenses and so on.
And that’s not taking into account interest rates, which more often than not result in you actually paying back around 175% of the property’s value to the bank.
If viable, consider alternative financial products and services like bridging loans and development finance, which can make a big difference to overall property purchase costs.
There are companies out there that offer low bridging loan rates to make the finance acquired via the bridging route an affordable option.
Location, Location, Location
Sure, it’s cliché, but it’s also so important it needs to be repeated…three times. If you’re looking for the largest and most luxurious home you can possibly afford, you will need to accept your limitations when it comes to location desirability.
By contrast, if willing to pick up a smaller home or fixer-upper to be worked on over the years, you may be able to afford something in a more prestigious postcode. Think carefully about what matters most to you.
Don’t make the mistake of forgetting to factor travel times into the equation. The kids’ school may be on your doorstep, but how about that 60-minute daily commute to and from work?
You may have a gorgeous rural landscape outside your window, but do you really want your closest convenience store to be a 30-minute drive away? Exactly how near or far you are from the places you’ll be travelling to regularly can and will make a big difference.
Even if looking for a permanent home for yourself or the whole family, it is still important to consider its future value. A time will come at some point in the future where the property will once again be put up for sale and passed-on.
When this happens, you want to know that you’ll at least be getting the same kind of money back for it that you handed over in the first place. There’s nothing to gain by picking up a property that loses you money long-term.
Solicitors and Advisors
Last but not least, always remember that all the advisors and legal experts on the market are by no means of the same calibre. In fact, there are huge differences from one to the next, in terms of both the quality of their service and the prices they charge for their time.
Before going ahead and trusting any such service provider, take the time to see what others have had to say using reviews and feedback from past and present customers.