Buying a home for the first time in the United Kingdom can be very intimidating, mostly because of the expense involved. So what is a first-time homebuyer to do? Here are some home buying tips for UK residents to help their first time home buying experience go as smoothly as possible:
- Know that buying a house is not as easy as it looks. You have to weigh the advantages against the disadvantages involved in buying a home for yourself and/or your family. If you find that the disadvantages are too much to bear compared to the potential advantages, then you may want to consider renting instead.
- One disadvantage of buying a home is the relatively steep price of new homes in the UK market (which is increasing even as we speak). The need to have enough income or savings for future repairs of your new property should also be a consideration. Keep in mind the reduction in your individual mobility. Once you own a home, you are less free to move or change occupations. Finally, keep in mind the possibility of negative equity if the price of your home decreases in the future (meaning you would have to shoulder total payments that are higher than the actual price of your home).
- Some advantages to owning your own home include having a large financial asset, being able to change your property to your liking, and you no longer have a nagging landlord that requires you to keep your property up to his standards.
- Get to know how to compute for your borrowing capacity. Factors which come into play here are the size of your current income, your ability to pay a deposit (as well as the size of the deposit), your credit report, and the interest base rate maintained by the Bank of England.
There are other home buying tips you should know that pertain to selecting your first home:
- Acknowledge that there are three major points to bear in mind when searching for a good house. These are location, type of property, and size of property.
- Location may be the most important factor when you're considering making a huge investment on the real estate property. For example, if your potential home is close to means of transportation such as a tram route or a railway station, the developer may be able to command a higher price for the property because the new owner stands to save much by commuting to work using the public transit. Similarly, if the property you are looking at is near tourist landmarks such as a royal estate, then consider the possibility that the price will go up once inquiries are made. You may also have to compete against many other people for the purchase of the prized property.
- Consider the type of property you have in mind. Young couples without children may be content with an apartment which has adequate parking, elevator service, round-the-clock security, and housekeeping. However, if you already have children, then perhaps you prefer a bigger property such as a two-story residential home with a garden for your children to play in. If you know exactly what you need (as opposed to what you initially want), then you stand to be in a better position in the end.
- Consider the size of the properties you're looking at. Size is closely related to type of property, but it takes the analysis of your needs one step further. So you want an apartment? How big should the unit be? A one-bedroom unit with kitchen? Or do you need two bedrooms? Or supposing you are looking for a full house, how many bedrooms and bathrooms should the house have? Is a bungalow enough, or does it have to be a much bigger house?
- Certainly every potential homeowner knows to examine the property he is eyeing before putting down his money. Considering the size of your investment, you may want to get an expert opinion from someone who knows about real estate (perhaps a surveyor) before you agree to buy a property.
Though buying a home can be daunting your first time around, it is not an impossible task. Hopefully, these home buying tips have helped you find your way somewhat through the home buying process.
If you'd like help finding a mortgage once you've found your dream home, take a moment to fill out this short form, and we will put you in touch with a mortgage broker from the SimplyFinance network who will answer all of your mortgage questions before they search the mortgage market to find the best mortgage deal for you based on your particular financial circumstances.