Buying a home is one of the major single investments many people will make in their lifetime. One needs to know how much he/she can afford and must have a good understanding of how mortgages work.
The price you pay for your new property is just the very beginning of the total significant costs involved in buying a new property. You need to have a clear idea of the fees you need to be paying, for example land registry, lawyer’s fees and expenditures, searches, survey fee, buildings insurance, decorating expenses, furnishing etc.
Lenders these days are inventing to new types of mortgages from time to time – this causes mortgages to come in all sizes and forms. The smart way of dealing with mortgage repayments is to spend less than 1/3 of your monthly salary on them. Consider this as a huge commitment as most mortgages last about 25-30 years. Talk to a financial advisor or a property agent about the best mortgage package that suits you best.
What is utterly important in your new home, and what would be just pleasant to possess.
Be realistic about where you can afford to live. Location is a critical decision-making factor that can make or break your desirable dream house. Do your homework: find out the roads, the public transport routes, the facilities and the ambiance of the area.
Be decisive about getting a new or an old home. Do you like renovating yourself, or do you prefer everything to be completed before you step into the house? There are pros and cons for both.
The big plus for new homes is that everything is brand new – you can move in without the hassle of spending money or time on refurnishing and repairing your home. The downside for new homes is the uncertainties of the project development – whether or not it will be completed within time given, it is risky as home buyers will have to pay the mortgage interests to the bank even if the project is postponed. The pro of getting old homes is that the development consistency; whilst the downfall for old homes is the expenditures and time spent on redecorating and repairing them.
