Buying Your First Home: What is Involved?
>> Jul 3, 2013
Getting on the property ladder is no easy
task in today's harsh economic climate, but the long-term advantages of paying
into your own property - and even making a tidy profit - can outweigh all the
risks. This said, it is a big decision which should be approached with caution.
Here's a quick guide on what to expect when looking for your first home.
How
much do I need to save?
It is usually advised that buyers borrow up
to as much as three times their annual salary, factoring in any second incomes
if buying with a partner. But in today's buying market, lenders often look to
things like earnings potential and whether there are any children involved.
In any case, it is a good idea to put away
as much as you can for a deposit as the more you can offer to a mortgage
provider the more attractive the prospect will seem to them. You will also have
a bigger stake in the property itself, safeguarding you against any decreases
in value.
Searching
for the right property
Start with location. The most obvious divide
is from the north to the south of Britain, with Greater London, the West
Country and Home Counties being typically expensive for housing. Also factor in
the distance from the nearest major city. Houses further out can offer more
rooms or space for the same price as a much smaller, urban dwelling.
As for the house-hunt itself, try to view
houses with an experienced family member or a friend. Enquire about council tax
and water bills and look for signs that major repairs might need doing.
What
is the buying process like?
Once you have decided on a property, you
will need to make an offer. It is good to look at similar houses in the area,
consult your estate agent and investigate the sellers before naming a figure. You
do not want to go too low and lose the property, but neither should you
over-pay.
Even once an offer has been accepted, the
process is still a long one. It is recommended to get a survey done on the
property and a solicitor also needs to be involved in what is called the
conveyancing - checking that the sale is legal. The final stages are the
exchange of contracts by the solicitors and the property does not officially
become yours until 'completion', when you will receive the keys to the house.
It is important to note that the costs of
moving into a new place. Legal fees, surveys, insurance and stamp duty all must
be factored in when you are saving up for your new home, as well as the
mortgage. It can also be worth considering buying from a developer, as there is
less chance of the sale falling through and new builds such as those at Ben Bailey Homes, often have more up-to-date
energy systems and layouts already in place so there may be fewer improvements
down the line.
Helina Hanshaw is a former property
consultant who now writes for various blogs on housing and home improvements
issues, using sites like #Linden Homes for updates on property news. She has
recently moved into her second home outside the city of York.
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