Finance

First Time Buyer: Things You Need To Know Before Purchasing A Property

Investing in property over the long term is common knowledge because it is a solid investment. Instead of paying your landlord’s bond off with your rental payments,  it is better to use the money to pay off your bond knowing that you will eventually own a home. However, it is not as simple as it sounds and even taking a step on the property ladder can be trickier than you might imagine. The irony is that finding a property that suits your taste and needs is sometimes the easy part as difficult as the process may be.

Understanding how the property market can be exciting to a newcomer and at the same time expensive and supremely stressful, this is where the resource of cosmos values real estate steps in to help.  Here are some of the things you need to know before buying your first property.

Clean up your act: Ensure your bank records are squeaky clean

If you’re planning to buy property, it is crucial that you access your personal credit file and address any issues that may be contained within them. In the event that you had any missed or late payments, ensure to accompany an explanatory note stating the reasons as it may help lessen the impact it might have.

Other important things that may help you is being registered on the electoral and having an up-to-date address history

Do the math

If you’re looking to buy property, go over your finances first to ensure you can be able to comfortable afford it. Get expert advice from your bank or independent financial advisor on what type of mortgage will best suit your situation and how much you can afford.

Remember that extra charges are bound crop up throughout the property buying process. Therefore, don’t forget to factor them in when you’re doing your budget as most of them are inevitable. Some of these additional charges include:

  • Lender valuation and survey fee
  • Solicitor’s fees
  • Stamp duty and the deposit
  • Removal costs
  • Home insurance
  • Furnishing costs (at the end)

Decide on what you want

You can’t go property hunting if you don’t know what exactly it is that you want. Take some time and think about what kind of property you want. List  the things you would want your dream property to have including number of bedrooms and bathrooms, size, location and amenities around among other things.

While doing this however, be realistic and consider identifying what your ideal property must have and what you’re willing to compromise on. Having a brief that is crystal clear will not only help your Realtor sift through the bunch but also save a lot of time for all the parties involved.

Do extensive research

Once you know what you’re looking for and you’ve already started viewing different properties, ensure you go more than once and at different times of the day, if you see something you like. This is because in a seller’s market, it is easy to jump the gun and put an offer in as soon as you’ve set your eyes on something.

Put your priorities in order before settling on anything. Think of this in terms of what is going to be most important to you in a new neighbourhood, the location, availability of good local schools, proximity to amenities, restaurants and bars, public transport links, commuting distance from work, closeness to family and friends and crime rates just to name a few.

Negotiate

In a realtor’s window, the price of a property is not set in stone meaning that more often than not the seller might be willing to negotiate. This is more likely to happen if your survey has picked up some defects on the property. However, you will never know until you ask.

Ensure that throughout the house hunting process, your realtor is well aware of what you want and that you have explained your requirements in full detail.