Buying your first home is an exciting and sometimes overwhelming experience. Most people dream of buying a home and save for years to build a deposit. But when it comes to selecting a property to purchase, many people often overlook some important details – We’re not about to let you waste your hard-earned money. The following is a list of things you need to consider when making the biggest single purchase of your lifetime.
- Budget: Budget is the most critical thing in planning to purchase a home. Most first-time buyers need to look for a mortgage to cover most of the property cost, usually around 90% of the purchase price. That means the remaining 10% is required as a deposit to obtain a mortgage. This 10% is the amount that you need to save before you can think of buying your first home. The downside is that by the time you’ve saved a deposit, property prices would have usually increased. But there is good news for all the people looking to get on the property ladder. With the Prysm Property’s Tenant-Buyer Scheme you can still realise your dream of buying your first home with as little as a 3% deposit. It’s important to note here that there are other costs too in addition to paying for the deposit. One should plan the budget taking into account all the expenses and fees to mortgage and move into your first home. This will usually include stamp duty, mortgage fees, solicitor fees and broker fees (if you use one).
- Location: Property prices vary largely depending on the locality. Whilst considering the location of your home, you should also think carefully about how easy it is to commute to work and how close you are to amenities such as supermarkets, medical facilities, school, parks, etc. Buying a house where all the basic requirements of daily life are easily accessible will result in a considerable cost saving and also improve your overall quality of life.
- Condition: They say first impressions are important. True, but we advise not to be put off by shabby paint or foggy windows as such trivial things can be changed and improved easily without much investment. The more critical things that require your attention are quality of construction and structural strength. Check for large cracks in walls and any bowing in the roof, or sagging of the ceilings.
- Future Saleability: Whether you plan to sell your home in the future or not, it’s never advisable to buy a property that most people aren’t interested in buying. If a property has been up for sale for a long time (even at a competitive price) and no one has bought it, it can be a red flag – do your sums and make sure that it won’t cost you more in the long run. Also pay attention to word-of-mouth and your gut feeling before finalizing a property purchase.
- Choose Your Solicitor Wisely: Having a good solicitor is also an integral part of making the purchase process smooth and easy. There’s nothing worse than a solicitor who takes ages to respond to emails or is slow at completing tasks – essentially these things could put the deal at risk, especially if you’re buying in a chain. Ask friends and family for recommendations and also educate yourself regarding the process too.With Prysm Property, we’ll do our best to make your dream of buying your first home come true.
Learn more about our Tenant-Buyer Scheme and you can purchase your first home with as little as 3-5% deposit, even if your credit score is not-so-good.
