Personal Finance Guide

Stepping onto the property ladder for the first time can be a daunting prospect. Home ownership is entrenched within our society and people often feel that it is a necessary step once they have joined the workplace and have a steady income. In many ways it is an essential step towards building up your assets and increasing your financial stability. It also means that you will no longer be having to pay rent
and essentially therefore pay someone else’s mortgage. It is however still a very big step that must not be taken lightly. Following these 6 tips for first time home buying will help you make the best financial decisions for your future:

1. Know all of the Costs: Buying a home is not just about the price tag of the property. There are so many other costs which must be considered when you are buying property. To begin with there are legal costs associated with conveyancing and it is always a good idea to pay a surveyor to inspect the property for any underlying structural problems which may not be apparent. The costs do not stop there. You will also have to pay land registry fees and other costs such as stamp duties. On top of this there are the practical costs of hiring removal companies and buying furniture for your new home. Then even once
you are in your new property there are a whole host of bills and taxes which you will have to pay on a monthly basis that you may not have had to when either renting or living at home. It is always a good idea to ask a homeowner for an idea of what their monthly expenses entail so that you can begin to make a budget before you commit yourself to a hefty mortgage repayment amount that leaves little room for other costs.

2. Research First Buyer Schemes

As a first time buyer you may be entitled to a first buyer scheme within your area. These are schemes which make it easier for first time buyers to get a foothold on the property ladder. Any help at this stage is to be welcomed. It is also a good idea to seek advice from trained professionals about first time buying as they can help you work out suitable areas in which to buy and what types of mortgages are available.

3. Save a Deposit

Before you even consider buying a property or taking out a home loan you will have to have saved a deposit of at least 5 – 10%. It may be possible to borrow this form a family member. If not it is advisable to begin budgeting for saving a deposit at least a year or two in advance of buying a house. Not only will this mean that you become accustomed to living on a budget it will also help you access more favorable mortgage conditions.

4. Ask for advice

Buying a house is a big step and you should ask around for a variety of opinions. Family members will be able to advise you on what bills and costs to expect, real estate agents can advise you on different areas to search for property and financial providers can offer you advice on different mortgage options. Being a fully-informed first time buyer will mean you are more likely to make a wise investment choice not just for today but also for your future.

5. Shop Around

Know what exactly you want from a property and shop around to get the most for your money. Bear in mind issues such as location, proximity to your workplace, the general demographic characteristics of the area and also the state of repair of the property. You may be able to get a much better price on a property that requires a little face-lift rather than one which has already been spruced up.

6. Consider the Future

When choosing a property it is important to consider your future plans. At some point you may wish to have a family or move outside of the city. Therefore it is important to assess the future sale-ability of your property before you even purchase it. This is your first step on the property ladder but it is most likely not your last and therefore you should make the best decision for your future progression up the property ladder.