Are you currently looking into buying your first home?
Buying a home is a major achievement, allowing you to invest your money and giving you the freedom to create a completely personal space.
Despite the excitement, it can be hard to know what to consider when getting your foot onto the property ladder. With the market changing frequently and being a first-time buyer, it can become overwhelming.
Here are some of the things you should take into consideration:
A key consideration you need to make is the scale of project you can realistically take on. Renovations, whilst appearing exciting, require a lot of commitment both in terms of finance and organisation. As a first time buyer, you may not be in the best position to undertake a large scale restoration project due to budget and expertise. It could be that purchasing a new home, or one that has been well maintained is a better option for your first property.
When doing your research, you have likely to have already determined the size of the deposit you are going to need. However, there are far more costs associated with buying a house that you may not have considered. It is crucial that you factor these in to ensure you can truly afford to buy a home.
Just some of the hidden costs include:
Solicitors’ fees – once you have an offer accepted on a house, you will need to enlist the services of a conveyancing solicitor to handle all the legalities of buying a home.
Searches and surveys – it is highly advised to have various local searches and a comprehensive building survey completed on your potential future home before you exchange contracts to ensure the home is both in good condition, and that it is not going to be impacted by local changes such as outstanding planning permissions.
Moving costs – as this is your first home, you may not have a lot to move, but if you do, you need to take into account the cost of hiring a van or using a removal company.
Similar to hidden costs, you also need to consider what your actual monthly payments are going to be once you own a home. Your mortgage advisor will be able to tell you how much you will be paying monthly toward your mortgage, but this is not the only payment you will be required to make.
It is wise to do some research and estimate the cost of all utilities, including gas and electric, water, and broadband.
You are also legally required to have buildings insurance when you own a home, and many people choose to get life insurance too.
Once you have worked out the cost of this, add on any other payments personal to you such as your phone contract or gym membership.
Doing this will give you a much clearer indication of your likely monthly outgoing costs