Buying a house is a huge lifestyle change and financial obligation. It is stressful, exciting, complicated, nerve-wracking, and full of potential pitfalls. However, once it is done and dusted, there is no feeling quite like it. For those who are braving the move, here are some things to keep in mind.
You will always go over budget
No matter how much you budget for buying and setting up your new home, you will always, always, go over budget. Buying a property is not just about how much the square metres cost to purchase. You have to pay agents, bank commissions (if you get a mortgage), transfer fees, taxes, land registry fees, notaries and lawyers, and surveyors. Then there is the cost of moving house, which can consist of money towards boxes, removal companies, utility registration and internet setup.
Then, of course, you can’t forget decorating, fixing, and customising the interior, so the house is presented in the way you want it. Even things like getting appliances checked, changing lightbulbs, and getting rubbish left behind by the previous owner removed should all be considered. Basically, as this article from Investopedia outlines, even if you think you have factored in every single possible cost, there will always be something that pops up to surprise you. Get into a mindset that money is going to be tight for the whole year, if not longer.
There are ways to simplify the process
Buying a home will always be complicated and time-consuming with multiple steps, but there are things you can do to simplify the process. For example, saving can be facilitated through online banking apps, which round up to the nearest dollar, pound, or euro and put it into a separate account. You can also periodically tell it to put money into savings without you having to remember.
When it comes to property searching, rather than going through individual estate agents, the best way to find the perfect place is via online property search engines. They allow you to sift thousands of properties in seconds, filtered by your exact specifications. This can shave weeks off your search time, only showing properties that suit your requirements.
Last but not least, you can simplify the mortgage research process by using online resources that aim to cut costs and middlemen out of the picture. One such example is the online Trussle mortgage adviser platform to see what deals are around. It checks your eligibility against 18 providers while performing a soft credit check to get an accurate picture of what is available to you. This, again, saves you a lot of time in finding the right deal instead of having to approach each lender independently. Getting financing can be one of, if not the most stressful part of the process, so any simplification is often welcomed by prospective home buyers.
Do not underestimate the importance of good advice
As Forbes summarises within this piece on lawyers, when you buy a house, you need to engage several professionals, including a legal advisor (lawyer or notary), a surveyor, and sometimes an accountant or tax advisor. This will depend on where you buy the property and local laws and requirements. If buying through an agent, they will often suggest notaries and surveyors for you to work with, but do not feel pressured. You are more than entitled to find your own professionals to help you based on personal recommendations or your own preference.
Sadly, not all professionals are equal, and some are more professional than others. If you do not feel comfortable with a certain individual, you should always change. After all, this could be the largest financial transaction of your life, and you want it to be managed properly. You should also always do a check on the people you are working with before engaging them. This could be a Google search of their name, checking their credentials via a platform such as LinkedIn, and by asking around.
Of course, every house transaction is different and you may find yourself faced with different kinds of challenges, but by following these tips, you can make things a little easier on yourself.