Think Before You Buy: Does Your Property Purchase Make Financial Sense?

For most of us, owning a home is a lifelong dream. Most of us grow up with a desire to become a homeowner, and we crave that moment when we put the key in the door for the first time and set foot on home turf. There’s something incredibly magical and satisfying about being a homeowner, but buying a house is no mean feat, especially in this day and age. If you’re considering trying to get a mortgage and starting that property search, it’s important to think before you buy. Buying a house is a financial commitment like no other you’ll undertake, so it pays to ensure that your decision makes financial sense. Hopefully, this guide will help you to decide whether buying now is the best option for you.
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Can you afford to move?
Moving house is not just a matter of finding a mortgage, getting a deposit together and paying the asking price. There are lots of additional fees and costs to consider, like legal fees, survey costs and of course, the cost of moving. You’ll have to pay stamp duty, and there may be additional costs involved if you plan to do renovation work after you’ve moved in. It’s so important to have a clear idea of how much it’s going to cost you to buy a house in total before you set your heart on moving. If you go into it without doing extensive research, you may discover that it’s going to overstretch your finances when it’s too late.

The cost of home ownership
When you rent a house, you’re not responsible for most things that go wrong. If the boiler is on the blink, for example, you make a call to your landlord or letting agent, somebody comes around and fixes it, and you don’t have to worry about anything else. If your boiler breaks at home, you’ll be responsible for the cost of repairing or replacing it. Owning a home isn’t cheap, and you’ll need to keep up with maintenance jobs throughout the year. If your income is already stretched after paying your mortgage and bills, ask yourself how you would cover emergency costs. It is possible to look into options like loans for bad credit, but it’s best to be prepared and to try and make decisions that will enable you to cope if things don’t go to plan. If you’ve got that bit of disposable income available if you buy a cheaper property, you can put money aside and create an emergency fund. If you are desperate to buy, make sure you factor in the long-term costs, as well as the short-term, and ensure you can afford the mortgage repayments with money to spare. There’s very little point in having the home of your dreams if you can’t afford to enjoy life at the same time.

Adding value
Often, buying property can earn you money in the long-run. If you’re hunting for a house, look for potential. If you can add value over the next few years, there’s every chance of making a good profit when you sell.

Before you buy a house, think carefully about whether it’s the best decision for your finances. Buying a house can be lucrative, but it’s important to make the right choices at the right time.

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