FINE & COUNTRY BEFORE YOU COMMIT
We all know a home is a big investment. More than that, though, it’s a milestone. That’s all the more reason to be prepared. Jonathan Handford from Fine & Country Leamington Spa discusses what to consider before making your first property purchase.
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Making that first tentative step onto the property ladder represent a huge move towards owning an asset that can underpin your financial situation for a long time. Buying a property is a commitment that can literally change your life, particularly if it involves finance, so make sure you’re ready for it.
As well as finding the perfect home and dealing with the often overly complex process of a property transaction, first-time buyers need know the ins and outs of being a responsible homeowner. It’s important to make sure you are buying a property at the right time and for the right reasons.
Here are a few things to consider before you commit:
Are you planning on owning the property for an extended period?
Purchasing a property generally requires a deposit, lawyers and conveyancing fees, insurance premiums, maintenance costs and more, not to mention mortgage repayments. While you’ll hear tales of people buying a home and flipping it a few months later making a hefty profit along the way, these are the exception, rather than the rule. It usually takes at least five years, often longer, before you see a financial return on your investment. Buying only makes sense if you’re ready for a longer term commitment.
Are you mortgage ready? If you’re a cash buyer, not only are you in a fortunate position, you are also in the minority. Most buyers get by with the help of a bank loan
and that requires fiscal assessment. Before applying, focus on minimising your expenses and building a solid credit score, at the same time creating as much expendable income as possible. Try and avoid taking on any other debts, such as a new car repayment. These are likely to impact your ability to obtain finance.
Are you ready to spend? Apart from the deposit and the mortgage repayments, there are other costs in the home ownership equation. Don’t forget to factor in maintenance costs, a contingency fund and if you plan on liv- ing in the property, moving expenses. If you’re making the transition from tenant to homeowner, remember that the prop- erty is now your responsibility. If anything needs repairs or maintenance, it’s down to you. Be financially prepared with a bucket of savings to dip in to – and emotionally prepared to spend those savings on essential property maintenance.
Is the timing right? Timing is everything. The best case scenario is being ready to buy, but being able to wait if needed. This takes the pressure off. Buying a home is a bold move and the more time you have up your sleeve, the more chance you have of un-
derstanding the ramifications. With that said, don’t let an opportunity pass you by out of nerves. Be as ready as you can be to seize the mo- ment, while being ready to wait for the right moment.
Finally, remember that owning your own home is not always going to be easy. Like most things in life, it takes time, preparation, effort and money. Despite this, there’s a special kind of pride you’ll have in having a place to call home that is really yours.
For advice on selling or buying property, please contact Fine & Country Leamington Spa on 01926 455950 or visit
www.fineandcountry.com
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THE MIDLANDS PROPERT Y GUIDE F INE & COUNTRY
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