House Hunting Budget Tips That Make Sense
Aside from keeping your body in good health, finding a place to live is the most important fundamental of human life and house hunting can be challenging. Sadly, in today’s climate, achieving that goal can prove to be very difficult indeed.
I’ve already produced this guide on finding a rental home in tough circumstances. For now, though, let’s turn our attentions to buying a property and house hunting. After all, many reports suggest that first-time buyers have it harder than ever. So if you are going to take the plunge, it’s imperative that you gain the very best outcome. Otherwise, you could be setting yourself up for a very nasty fall.Here are a few simple tricks to ensure that you handle the process in style and create a house hunting budget that fits your needs.
#1. Save The Biggest Possible Deposit
Buying a property is probably the biggest financial purchase you’ll ever make. In truth, your chances of buying it as a cash buyer are very slim. That means you will be taking out a loan of some kind. If you can reduce the amount that needs to be borrowed by saving a bigger deposit, you should.
If you are living comfortably in your current rental or family home, don’t be afraid to delay your plans. Learn to live a more frugal lifestyle for six to 12 months, and you’ll be amazed at the impact it can bring to your savings accounts. Apart from anything else, it teaches great habits for those challenging first few months of being a homeowner.
Depending on your geographic location, you may be able to take advantage of various incentives too. These can range from cash bonuses to tax reliefs when buying the property. Either way, missing out on those opportunities would be a major disappointment.
#2. Think Beyond The Bank
In many situations, the easy option is often the best. When it comes to buying a property, the obvious solution of taking a bank loan isn’t always the right one. Making yourself aware of the alternatives is key.
An SMBIA broker can often give you far greater options for your mortgage. The versatility can often unlock a loan that is better suited to your needs. Any savings made on the interest rates will benefit your bank balance for the full term of the mortgage. Meanwhile, finding a deal that enables overpayments could save you a lot of money in the long run too.
If you are in an extremely lucky position, it could be possible to loan money from family too. Should this option be taken, though, it’s important to set out repayment terms in a contract. Otherwise, disagreements could quickly lead to relationship breakdowns. That’s the last thing that anyone should want.
#3. Consider The Timing
Timing is everything for a first-time buyer. Strike just become a boom in the market, and you’re set to see your personal wealth soar. Conversely, striking at the wrong time could take years for your finances to recover – even if the overall trends follow an upward curve.
As well as the market situations, you should consider the time of year. The competition is a lot fiercer throughout the summer months. Therefore, looking for properties at winter could put you in a far stronger position for haggling on the price. After all, if the seller hasn’t received bids from other buyers, they will need to negotiate.
Timing isn’t the only key element, and locations should be considered equally important. Of course, property prices can vary massively from city to city. You can also find that neighborhoods with better transport links to CBDs and schooling facilities can command more too. It’s vital that your home is fit for purpose. Nonetheless, if you can get a similar property at a better price by sacrificing unneeded external elements, you should.
#4. Understand Different Property Types
Ultimately, your main goal is to get more bang for your buck. In many cases, simply opting for a different type of property could work wonders for your budget. A maisonette with the same floorplan space as a house will always be cheaper. Of course, there are other benefits of having a house, but it’s about weighing up the pros and cons.
As well as the type of property, you should consider the condition. If you have young children, you won’t want to take on too much work. However, buying a fixer-upper can provide far better value for money. Not only because it’ll be cheaper to buy, but because you’ll have a chance to make money on it too. You’d probably spend money on the cosmetic decoration anyway. Meanwhile, you may find that buying properties at auction can unleash a bargain too.
New build properties can be a peculiar solution. In some cases, they’ll be very expensive due to the specs. In others, though, they can be surprisingly affordable. It essentially boils down to completing the right level of research. Your heart will tell you when it’s the perfect property.
#5. Don’t Forget Additional Costs
Buying a home is very expensive. Unfortunately, the accepted bid price isn’t the only cost you need to consider. There will be interest rates, legal fees, and taxes that must be taken into account. So if you’re not careful, you could find yourself biting off more than you can chew.
It’s always worth leaving a couple of grand spare too. After all, moving your possessions won’t be cheap while there will always be a few shocks along the way. If you haven’t built that little safety cushion, you could find that you’re back in debt before you’ve stepped into the new home. Given that you’ve just taken on the commitment of a mortgage too, this cannot be considered good.
Essentially, ouse hunting is one of the biggest decisions you’ll ever make and is one that must be made with open arms. Take the time to gain a reflection of the full picture, and you’ll avoid those potential problems. Better still, it’ll ensure that your budget works far harder too.