Buying a home, whether this is a first family home or your 10th investment property, it is one of the biggest investments that most of us will make in our lifetimes. It is important to make sure that you are ready to take this step, and have thoroughly researched and understood all your options prior to signing. In this article, we will discuss some of the things that need to be considered before purchasing a home.
Assess your financial situation
Assessing your financial situation should be one of the first steps that you make towards home ownership, as this will shape the route you take. From an estate agent perspective, due to the current seller’s market, it is important to have a Mortgage in Principle in place prior to viewing homes, to be deemed as proceedable by vendors and agents. Speak to a wealth management expert who can help you work through your finances, and have a look at all your current assets, income, mortgage rates and any other financial responsibilities that you may have. This will help to establish how much money you can afford as a down payment, and the type of things that a mortgage lender will be looking for. They can also advise on when to buy – if it is worth waiting that extra 6 months and saving more, or purchasing straight away.
Assess your needs/ house features
There are a few important property features to consider before buying your house. Depending on if this is a buy to let investment or a family home, will affect how important these factors are to your individual needs.
The location is a huge factor in the suitability of your new home, do you work in a city centre and need access to good transport links? Do you not have a car and want to be able to walk to work or your children’s school? Create a list of the places you visit regularly, and ensure that you can commute to these easily.
Another thing to consider is the size of the property you are going to buy, and how many people are intending on living there. This may impact whether you purchase a house or a flat. Are you considering starting a family soon – will there be enough good quality schools in the area and enough space in your property, both inside and outside? Consider how long you would like to stay at this house for on the above factors and work out with your wealth management advisor how much you should invest in this property – or better ways that your money could work for you in the short, medium, and long term.