First Time Buyers Guide
Buying a property for the first time can be exciting. It can be intimidating too given the steep property prices and the processes surrounding property purchase. With the right information, you can make better decisions and avoid expensive mistakes.
Save for Deposit
Usually, around 5% to 10% of the property value will be required as a deposit. You would want & need to save this amount before you begin your property hunt.
Set Money Aside for Other Expenses
Such expenses include buying property insurance, arranging for mortgage and stamp duty. You may also want to save for legal opinions, property surveyor’s services and possible initial furnishing. Note that these expenses are in addition to your monthly mortgage payments.
Assess the Condition of the Property
Check for damp in the property, which is given off by signs such as a musty smell, walls and ceilings with water spots and plaster that keeps falling off. Look for big and even hairline cracks on walls and less obvious areas such as bay windows and extension joints.
Other things to know about include the condition of the roof, availability of storage space, the presence of adequate and sound power points, and efficient plumbing. Get a complete list of things to check before buying a property!
Take Advantage of Government Housing Schemes
Depending on where you want to buy your property and if you are a first-time buyer, you can find several government housing schemes to avail and benefit from. Check out the complete list of schemes here.
Know whether the Property is Freehold or Leasehold
A freehold property means you own the property as well as the land. Leasehold means you’ll be owning the property and the land for as long as the landlord and you agree upon.
The type of ownership affects several things. These include getting a mortgage, maintenance responsibilities and dispute management.
For example, as a leaseholder, you’ll have to pay maintenance fees and get your landlord’s consent for carrying out major repairs. It is, therefore, essential to understand what you are getting into.
Do your Homework on Mortgages
While most mortgages run for 25 years, there are options if you want a shorter or longer duration. It is important to know how much mortgage repayment you’ll be able to afford given your monthly expenses. Find out using the Mortgage Affordability calculator.
You’ll be able to get a mortgage only if lenders are confident that you’ll be able to repay without fail even if interest rates go up. Lenders usually ask for a proof of your income and expenses such as monthly bills, travel expenses and child maintenance.
There are different ways to get a mortgage including from a bank or independent financial adviser. Since the product range is vast, be sure to get expert advice before choosing a mortgage.
Whether you want to buy, sell, let out or find a property for rent, Bowson Estates, a property management consultancy firm in Newcastle are here to help. As leading estate agents in Newcastle, we understand the North East marketplace well. With us as your estate agents in Newcastle, you can be sure of getting the best deal.
We are in tune with the latest in technology to offer you maximum cost benefit. As technically-advanced estate agents, we use the latest in online technology such as Zoopla and Rightmove to give your property maximum exposure.Contact us today or call 0191 212 8100 now for more information.
You’re in Safe Hands