When purchasing a property, you need to take into consideration that big decisions are to be taken and they require commitment on the long run. In order to prevent any unwanted surprises down the road, you will have to inform yourself thoroughly.
So, here are some steps that are crucial when buying your new property.
Perform an in-depth analysis of your finances
This analysis is very important since it will determine whether you are able to purchase a property or not and it consists of several key points.
- Determine what your income is, what your savings are and the value of your assets.
- Consider selling your belongings in order to buy the new property.
- Evaluate your future expenses and earnings, taking into account the expenses that will be made for the new property.
- Take into consideration the external factors as well, such as the economic state, the property prices and their forecasts for the region you decide moving into, the interest prognosis, etc.
These are all crucial factors that influence the next category.
Savings and costs
After performing the analysis, you need to start reducing your expenses when it comes to bills, groceries, and shopping for household items and clothes.
Try to cut down on eating or going out too much as these can prove to be quite costly when adding up your expenses.
When you start evaluating the future costs, you need to understand that there are two divisions of them: upfront costs and ongoing costs.
- The upfront costs include a number of fees such as legal fees, mortgage, buying agent (if you decide on getting one), deposits, moving and many more.
In this category, there are also included the deposit costs and the stamp duty costs.
- The ongoing costs consist of utilities, council rates, maintenance, insurance, interest and loan repayments and their potential increase.
A very influential factor is finding a suitable loan with a small difference between the interest fees and the rates because these will add up in the future. Do not make hasty decisions and take your time when comparing lenders and the deals they offer.
Be aware of the lender’s red flags and ensure that you fulfill all the mortgage requirements, so you don’t have your loan application rejected.
Get help from professionals
Of course, there are also property professional services that specialise in this domain and will offer a clear and exact financial analysis of your budget state.
However, you should know that these services cost and the prices may vary substantially depending on the quality of their services.
Such experts are real estate agents, lenders, financial advisors, solicitors or conveyance and mortgage brokers.
While this process is a very exhausting and scary one, at the end of the day, it will be one of the most rewarding and exciting periods of your life. Purchasing your own property is a big step in your life and you should take it seriously and prepare yourself well ahead.