The idea of buying your very first home is a huge deal. That’s been drilled into us since its considered a huge and rather valuable investment. Whilst buying a property may not be something for everyone, nor be achievable for many, it should not be down played as huge accomplishment, especially in this current property climate.
Your hard earned cash is being put into a property that will one day completely be your own. How awesome is that!
Whether the investment becomes your retirement income, or something to leave to your family, its something of a financial safety net as so to speak.
Whilst the rental market has a ‘black mark’ against it, it’s no surprise many of us consider buying before renting. Buying your very first property is something for a large consideration and whilst I have informed you of the ‘real costs of moving‘, whether from one property to another or your very first, I’ve tailored this post for those looking at their very first property.
Here’s everything you need to know, going alone, with your partner or friend, and the real in’s and out’s of property ownership.
Knowing What To Expect
Buying a property isn’t as cut and dry as you may think. There is a lot to be said for purchasing a property, whether it be your first or ninth. You will need to be prepared mentally for the challenge. Chances are, it will be a long and possibly overdrawn process, and that’s not even considering the time it takes you to save. Mortgage applications and property purchases can take months to go through, so this is something to consider, and be aware of.
Next up, you need to start saving. And this can take years! You will often need 5-10 percent of the property value in savings as your deposit. And this can be overwhelming when you’re looking at somewhere that costs £200,000! But if you’re really determined to buy your own place, unfortunately it is the process in order to get you your own home. Consider things like help to buy equity loans and saving help if you are really struggling to find the cash. Be aware, the equity loan however, can only be used on a new build property.
Now you’ve pooled in the funds, and prepared yourself, you’re going to want to start the property search. And trust me, it’s not as easy as you may think. Whether you are purchasing through help to buy or not, finding a house can be a long process.
Really make sure you leave yourself enough time to find, and don’t put too much pressure on yourself. Purchasing your first home will by no means be your forever property, however, choosing a sensible property now can save you cash in the long run. Consider your future desires and if you can, purchase a property that will give you the scope to live there for a pro-longed period.
I have done a whole post on the real costs of buying and / or moving home so I have all the details in that one. But the long and short of it, there will be extra costs when it comes to property purchases. With property solicitors, surveys, and more, it’s good to have a buffer. It’s a really good idea to have some extra cash, aside from your deposit so you’re not stuck when extra bills and costing arise.
The final consideration is any changes that you want to make to the property you end up buying or considering. If you are buying a new build, then hopefully you won’t have to do any work, just a lick of paint here and there.
However, an older, more tired property will need a little more TLC. It’s a good idea to factor in not only the renovation costs, but the time it takes to do it too. Before putting in an offer, be sure to add the overall costing to your outgoings. Whilst some of the work maybe something that is done later down the line, it’s a cost that will effect how much money you will make on the property in the long run. Consider this also when putting in offers, as money you can save now, will pay off massively when it comes to selling the property later on.
Hopefully this little post has helped those first time buyers considering their first property. Remember not to rush into anything and always ask questions if terminology or problems arise that you’re not clued up on. Get all in information you need when it comes to mortgages and make sure you are not over committing to something that can potentially apply financial strain.
Property purchases are a ball ache, but they are totally worth the hassle in the end!
Are you purchasing your first property?
Do you have any advice for First Time Buyers?
As always, let me know in the comment section below.