Purchasing your first property is a significant milestone and can be both exciting and daunting. There are several crucial factors to consider to make an informed decision.
Here's some advice on what to consider before making any important decisions:
Budget & Affordability
Assess your finances
Before you start looking, know your budget. Do you have an Agreement in Principle in place? This serves as an indication as to how much you can afford when looking to buy a property.
Take a look at our blog post that details exactly what it means to have a Mortgage in Principle and why this is important here.
Location
Research is key
Before committing to a new location, it is crucial to look into local amenities, schools, transportation links, and crime rates to assess whether this matches your needs and wants when buying a property.
It is also worth considering your long-term plans within the next property you purchase as things like schools and transportation links may not be a necessity now but might become so.
In addition, from a financial investment point of view, it is worth considering the future of the location you are buying in.
For example, are there any planned developments that could affect property values? How will this affect your property and the local community?
Property Type
New Build or Period Property
Both New Build properties and Period properties have their pros and cons, ranging from energy efficiency to maintenance costs. Having an idea of your needs and preferences can help narrow down the property search.
Leasehold or Freehold
Understanding the differences and potential costs involved with each is vital.
Additional Costs
Stamp Duty
Familiarise yourself with the current Stamp Duty thresholds and rates you will need to pay. As a First Time Buyer, you will not pay Stamp Duty if the price of the property is £425,000 or less. If the purchase price exceeds this amount, you will be subject to pay 5% on the portion of the price that is above £425,000.
For home movers (those who are not first-time buyers but will own only one home), the rates are currently as follows:
Up to £250,000: 0%
£250,001 to £925,000: 5%
£925,001 to £1.5 million: 10%
Over £1.5 million: 12%
Other Expenses
Factor in survey costs, conveyancing fees, moving expenses, and immediate repair or renovation costs.
In short, purchasing your first property is a major step, so ensure you have considered all these aspects before proceeding.
Contact us today to discuss your next steps in your home buying journey.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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