How do you know when the time is right for you to buy a property? Here are some important things to consider when looking to buy a home:
This should be the single biggest factor when deciding whether the time is right to buy a property. Home ownership is likely the single biggest purchase you will make in a lifetime, so it is not a decision to be taken lightly. Ask yourself if you have enough money saved for a deposit, ideally at least 20% of the asking price. You should also consider if you can easily pay the monthly mortgage payments. Try to think of future payments and not only the current state of your financial health. Don’t forget to consider additional costs associated with buying a property, such as reports, insurance, Conveyancing Solicitors London and decorating, for example. Conveyancing Solicitors London can help with the legal aspects of home ownership.
Your Financial Future
Thinking ahead is an important step in deciding whether to purchase a property. If you have recently changed jobs, looking for another job or expect any changes to your income in the future, you should hold off until you are more confident of how the land lies. Most mortgages can only be obtained if you have been with an employer for more than a year, so this is another thing to consider. You must have contingencies in place in case anything goes wrong in the future. What if you were made redundant or have a long-term sick leave period? Before buying a home, it is important to have an emergency fund available as well, for the worst scenario situation.
It is a good idea to check your credit score before seriously considering buying a home. Your credit rating will determine if you are accepted for a mortgage and what rate you will be offered. A lower score will result in a higher interest rate, which means you will pay much more in the long run. If your score is lower than you want, spend some time trying to fix it and repay some debt, check your reports for any errors, make all your payments on time and avoid applying for further credit.
A big commitment
Get ready for more responsibility if you are a homeowner. If you have previously only rented, then who is responsible for all repairs and maintenance may come as a surprise. Some people like to have this job as part of owning a home but for others, they prefer someone else to take responsibility. Knowing whether you are ready for this commitment is another decision to make before putting in an offer on a house.
Stay in one place
If you have the desire to travel the world or are not sure you are ready to settle in one area, then it is not probably the best time to buy property. Unless you intend to stay in your home for a while, you will not make money from that sale. With all of these costs, it is very difficult – if not impossible – to make money from your home unless you plan to stay in it for a while. Experts have suggested that a period of between 3-5 years at least is required if you want to buy a house.