Buying a house is usually the biggest financial decision that a person makes in life. While it can be an exciting time, it can also be incredibly stressful and arduous. It is also vital that you make the right decision, especially as it will greatly impact your finances for the future. Here are a few of the key factors to consider when buying a home, as well as a few red flags to look out for.
1. Speed of purchase
Depending on where you are buying, the purchase of your new home can be a time-consuming and arduous task, dependent on a chain of buyers. In England and Wales, if one buyer in the chain drops out, for whatever reason, the whole chain can be held up for months. For that reason, you’ll have a great advantage if you are a first-time or cash buyer, not having to wait around to sell your own home. That can make you more attractive to sellers and perhaps command a better deal. If you’re not in that position, but are in a hurry, then it can be worth considering mitigating risk by selling to a dealer at a discount. See we buy any home reviews for details of how that can work.
2. Deposit and interest rates
Of course, the deposit is a huge factor that you need to consider. The minimum deposit for first-time buyers is 5% to 10%. You want to put down as large a deposit as you can (ideally around 20%), but you must also make sure that you do not leave yourself in a difficult financial spot with no savings. Additionally, you need to factor in the other costs of buying a house.
3. Interest rates
Interest rates are another key factor, especially in the current economic climate. The interest rates will greatly impact how much money you pay each month for the foreseeable future, so you want to get a good deal. Speaking to a mortgage advisor who can offer advice and find the best mortgage deals for you is best. Also, consider how you will cope if interest rates rise significantly after a fixed rate ends. How would you cope with a 10% interest rate? Make sure that you don’t take on a commitment that leaves you with zero room for maneuver.
4. Location
You must also make sure that you are buying a house in a location that fits your lifestyle well. You could find your dream home within your budget, but if it is in an undesirable area or too far from work, friends, family, etc, then this will negatively impact your life.
You also need to think ahead to the future. You should be looking to stay in the house for at least five years, so you want to consider what your life will look like in the next few years. You need to think about if you will be growing your family, proximity to schools, and living space. If you are downsizing due to retirement then make sure to pay special attention to public transport links and distance from healthcare facilities.
5. Red Flags to Watch Out for When Buying a Property
There are also a few red flags to look out for when purchasing a home. Damp/mould is one of the most common red flags and an issue that you want to avoid at all costs. Often, this stems from negligent cavity wall insulation. You can make cavity wall insulation claims to receive compensation in these situations. Other red flags include:
- Foundation cracks
- Doors that won’t close
- Water stains
- House has been on the market for a long time
- Priced well below the market value
Buying a home can be an exciting time in your life, but it is also a huge decision that you need to get right. It is important that you are aware of the key factors to consider as well as a few red flags to look out for when going through the process of buying a home.