The property market has been the source of much news in recent years, as incredible rises in house values were stymied by significant increases in interest rates – leading to unprecedented falls in property value anticipated over the next two years. First-time buyers have been finding it harder than ever to get on the ladder, but anticipated falls in value could well be a golden opportunity. With this in mind – and if you are considering trying for your first home – what should you consider ahead of viewing properties?
Budget
Naturally, your very first concern when it comes to buying a property will be your budget. Property values vary widely depending on a number of different factors, from location (more on which shortly) to size and condition. In many cases, the asking price for a property is negotiable, giving you some key leeway when hunting.
But the cost of buying a property is not limited to the agreed price. There are ancillary costs that are unavoidable, and which need to be budgeted for carefully – beyond, even, the Stamp Duty costs that many first-time buyers forget about.
For example, it will be impossible for you to complete the sale without the services of a conveyancing solicitor to organise the legal aspects of the sale. The cost of such legal counsel can differ from firm to firm, but with the right approach you can find an equitable arrangement for a good price. You will also need to factor in the cost of surveys – and, potentially, the cost of further renovation work after purchase.
Location
Next on your list of considerations is that of location. This can have a meaningful impact on your budget and what exactly it affords you, with some areas enjoying lower average property values than others. However, these decreased values can come at a cost. For example, a cheaper property might be further away from transport links or education centres. What are your needs as a household, and will the properties you are looking at fulfil them?
Space
This same question can be readily applied when it comes to space. Space is a key factor for practically every house-hunter, and one of the leading reasons behind the spike in demand for property at the outset of the coronavirus pandemic. But how much space do you need for your household? You might be able to make significant cost savings if your need for long-term storage is lower.
Condition
Lastly, but nonetheless importantly, there is the issue of condition. This has been touched upon briefly in the ‘budget’ section, with additional money likely being needed to carry out quality-of-life repairs on moving in. But condition should be a primary concern when viewing properties, in order to avoid being saddled with a costly home. Evidence of serious damp is usually a harbinger for potential structural damage, while subsidence can cost tens of thousands to fix before you even get to interior renovation.
