Questions to ask yourself when buying a property
Six questions to ask yourself when buying a new home
Buying a property is a huge investment so there are some questions you need to ask yourself before making the commitment.
How big a deposit can you afford?
There are multiple reasons why the bigger the deposit you put down on a property you buy the better.
One of these reasons is that you will usually secure a lower interest rate on your mortgage because the mortgage lender will see you as less of a risk.
Another reason is that you will be better off in changing circumstances. The bigger the percentage of your property you own, the less debt you will be in – this means that if you need to sell there is less chance of any remaining debt caused by a decrease in the value of the property.
Is it in the right location?
Buying a property in the right location has a number of benefits, from having more parks and open spaces to being closer to work.
Being closer to work will save you money and time that would otherwise be spent commuting, making your life easier and less stressful.
You could consider renting a house for a while in the location of your choice to make sure it will be the right decision.
Will you have money to buy furniture and pay for repairs and maintenance?
If you are buying your first home you will soon realise that there are more costs than expected associated with owning property.
A big cost is repairs, maintenance, and redecorating, both as soon as you move in and also on an ongoing basis. You should factor this cost into any calculations you make when deciding what house you can afford.
Will you have any savings after buying the house and paying for furniture and repairs?
Then there are any emergencies which could cost you money, and which are especially important to protect yourself from if you own a property. It would be a good idea to have money left over even after property repairs and maintenance for emergency situation such as losing your job.
How will buying a house affect your overall financial situation?
Everybody’s financial situation is different but something they all have in common is that they are complex, and no decision can be made in isolation.
When you are about to buy a property you need to consider your financial situation as a whole. Insurance, for example, is especially important once you own a property because you have so much more to lose.
Does the property have the right features?
One of the things that affects the cost of a property is the features it includes – the more desirable the features, the more money it will cost. Before you go hunting for your perfect property, you should write a list of all the features that you really can’t do without, and features that won’t be a deal-breaker if they aren’t included. Then you will be less likely to pay more than you wanted for a property because you will not be wasting it on things you don’t need