Buying property represents a commitment to staying there for an extended period. You have to consider whether there are circumstances that may require you to move after a short while such as starting a family or a change of jobs.
Rising interest rates
Interest rates can rise at any time with little notice. You have to ask yourself whether you’ll still be able to afford to pay your mortgage if interest were to rise by just a small amount. If so, you may want to consider borrowing less money.
How much will your finances suffer
You have to assess the financial impact of going all out to get your dream home. The home you’re looking for may mean a very high mortgage, one that may limit your other expenses or put you at risk of losing your home. Is it worth it?
The challenges of owning a home
Owning a home isn’t a day out in the sun. It comes with many utility and maintenance bills and there will always be the inevitable repairs that spring up when least expected. You also won’t be able to just up and move to somewhere new.
Would a long-term tenancy serve you just as well?
As a long term tenant, you will have more rights and may even be able to negotiate a cheaper rent. You will be able to do more than a regular tenant to make the place your own. This may be better than buying.
Search for a house in other regions
Restricting your property search to just one area will mean restricting yourself to the prices. Considering how much more property costs in London compared to the northern regions, it may be better to look for property elsewhere even if you work in London.
Remove the Middleman
Rather than going for property that is on the market, you can instead look for property that isn’t yet on the market. For example, you could go to a property that is being offered to-let and instead offer to buy it.
Track Property Prices
When you know the postcodes you’re interested in, you can use websites such as Zoopla to find out information such as how much property in the area is going for compared to the asking price, how fast is the property selling. You can also try to find out why some roads or property are more popular.
Is your Mortgage Ready?
When you’ve agreed on a mortgage in principle, you’re in a position to show the seller that you’re a serious buyer and this is important when houses are selling fast. A mortgage agreement isn’t tied to any property and you don’t have to follow through.
Estate agents are always looking to get a higher price
Agents are using various tactics to attract more bids and make it seem like there is a high demand. This includes advertising property at an artificially low rate. Some agents are also charging finder’s fee which can be as much as 2.5% the property value. Be on the lookout for such practices.