First time buyer's guide
First time buyer's guide - Everything a first time buyer should know
Anyone thinking about joining the UK property market for the first time should know everything that is involved before you start as it is a complicated process that can spiral out of control if you don't know what is ahead of you. Finding out helpful information is easy as there are numerous resources to utilise such as the Internet, books, estate agents and through talking to people who have previously purchased property. Every property purchase is slightly different so there is no sure fire way to make the transition to a homeowner from a renter but there are a few things that you can learn about to make it run as smoothly as possible.
Decide on a budget and stick to it
Work out your finances in detail and calculate the costs of buying a house. Always include the cost of the whole process including the asking price, solicitor fees, agency fees, property surveys and then add another 10% to ensure you can cover any unexpected costs. When you view property, be sure to only look at houses that are within your budget as agents may test your financial limitations by showing you more expensive houses to tempt you into borrowing more money. When you have gone through your finances with a fine tooth comb, double check them and then stick to the budget.
Use a reliable estate agency
If you have made the decision to purchase a home with the intention to rent–to-own or with a traditional mortgage, it is vital that you trust your agent as they will be advising you on everything from the money you should be parting with to showing you around property that matches your requirements. Estate agents can be tempted to take advantage of first time buyers, as they assume you do not understand the process of purchasing property, so do some research on local house prices so you have an idea on what you should be paying for the size and location of the property. As long as your agent is reputable and trustworthy, there will be no problem with trusting the information they provide you with. They will also be handling any legal arrangements with your solicitors and provide regular communication channels with everyone involved in the process.
Make a list of your requirements
There are many decisions to make when purchasing property and some that many first time buyers may not have thought about until you have already moved in. Write down what you need to feature in the area in the way of amenities and facilities (shops, entertainment venues, transport etc), look into schools and safety in the area before committing. Once you have decided on what the surrounding area needs to include, jot down any extras that may not be essential but would be nice like a local park or woodland. Then do the same for your house requirements by writing out a list of all the necessities, from the number of bedrooms to the price, and then any additional requirements like the garden size or number of garages. Submit your checklist to your agent and keep a copy for yourself and this will help if you have a shortlist of properties to choose between further down the line.
Inspect the property in detail
When you have found a property to view, check out that there are no significant electrical, structural or plumbing problems that may see you forking out money in the near future. Look at less significant details as well to assess the amount of effort and cost it will take to fix leaking taps, broken window sills or chipped paintwork. Find out about what furniture will be included in the sale and bargain either more furniture or less money to suit your needs.
How will you pay for your first home?
As well as getting a mortgage, there are a few other options to help first time buyers with purchasing property. Homeownership schemes are dedicated to helping people to buy their first property. It works by allowing you to buy a portion of the property and either take out a loan to fund the remaining money or rent back the remaining portion from a housing association. There are also homes known as ‘starter homes’ that mean that developers assist first time buyers with everything from financial aid for the deposit to mortgages that allow you to rent now and buy later. These different financial aids can make the difference from being able to buy a house or having to continue to rent.
Purchasing your first property should be an exciting time, so above all remember to enjoy it. It is vital to remember to do your research into the location, price and property itself and don't ever make a rushed decision. Always take some time out and recollect your thought and discuss the decision with a partner or family and stick to your budget. The process may be a bumpy journey but if you have planned properly, the stress damage will be minimal and as long as you consider all the aspects before jumping in head first you will be the proud owner of a new home before you know it.
