Buying a house in this age and time is not only a significant milestone but is also a major responsibility. There are a lot of factors that have to work for an individual or a couple to reach the point where they can already purchase a house. The decision itself of buying real estate property can be quite a challenging time, much more the choice of which home to buy.
Real estate in London comes at quite a steep price. It is this exact reason why you should not settle and find only the best fit for your needs. Here I have listed down some of the things to consider when buying a house in London.
One of the most substantial factors that you always have to take into consideration is your safety when you’re already a resident. It is only logical that we choose the safest living space for us, especially with crime rates in London continually going up. What good exactly would come from us being kept awake at night, paranoid out of our minds that a burglar might break-in? Of course, you can always call local CCTV installers and have an active surveillance system ongoing.
Aerialforce can help you with that. We have CCTV installers in London available at a moment’s notice. If this is a new house that you are buying, you might also want Aerial or Satellite Dish Installations so you can get the optimal signal reception for your TV.
Purchasing a house is a long-time commitment. Are you really ready to buy a house? You will be tied down to the bank through a mortgage for years unless you have the money to pay the full amount. Make sure that you are financially stable with your job secure before getting a house.
One missed payment to the bank because you lost your job or you had a medical emergency can easily landslide and put you in deep debt, even bankruptcy. The last thing you want is to be jobless with a huge debt accruing a lot of interest with every missed payment.
There’s no point of getting a house that you are not comfortable living in. Take into consideration the location and the neighbourhood. Do you see yourself living there even after five years? Ten years? What exactly are your plans for the future? If your plans take you far away from your house, then it may not be the perfect fit for you.
For instance, if you are planning on getting postgrad education abroad, then it’s best to rent for now. Leaving your house empty for a year or two is not exactly a good move, not to mention, you’ll still be paying for its mortgage. Essentially, you will be paying for a house that no one is staying in.
Duration of Stay
Speaking of stay, you should also consider just how long you plan to stay in that specific county or state. You should only get a house when you (and your partner) have already decided to settle. Again, purchasing a home is a long-term decision that can’t easily be undone. Renting is a much better option when there is a high possibility of you having to move around the country.
One of the biggest obstacles that come with buying a house is saving up for the downpayment. While the bank will shoulder the majority of the price of the home and you pay them in increments, you still have to shell out 20-30% (or even 50%) of the full value. A lump sum as big as that is not exactly accessible to most of us.
It would be better if you delay purchasing a house for another couple of years, where you will save up for a huge downpayment. Taking a massive amount off of the principal amount will mean that the bank loan is going to be smaller. This, in turn, will relate to a lesser interest that you have to pay your bank.
When looking for a house, one factor that you should account for is your future needs. While a 2-bedroom apartment is enough for your needs right now, it may not fit you moving forward into the future. If you plan to have kids, then there is that fact to consider. Additionally, there’s also the number of items that you have. You may want to get a bigger sized house if expanding your family is on the table.
Current Mortgage Rates
Majority of homeowners will tell you that mortgage is their biggest headache. Aside from the monthly bills (i.e. electricity, gas, water bills) that they get, there is also their mortgage, which takes a considerable chunk out of their wages. Do the calculations and determine whether you can lose a massive part of your salary every month.
You can save yourself precious time by taking the help of a mortgage broker as they understand the market and have profound knowledge about the suitable mortgage rates and loans for you.
TIP: Read our article on 5 Tips on How to Handle Mortgage Brokers in Best Ways