Fallen in love?
Love is blind. And so is purchasing property if you don’t do your research. It involves ups and downs, excitement, disappointment, joy and heartache. To help you through these peaks and troughs of property love, consider these things before you fall head over heels in love with ‘the one’.
Taking the plunge
You have decided to hit the property scene and you’re looking at your options each weekend. You are flicking through apps, and looking at potential inspections. Sometimes there’s a spark and other times you see the potential but know there is need for improvement. House hunting can be an arduous process!
Whether it is by yourself or with a partner, saving enough for a deposit is a big task. While you may only require a 10% deposit on the day that you purchase the property, taking the time to make sure you are borrowing no more than 80% of the property value will save you a lot of money by avoiding the cost of Lenders Mortgage Insurance (LMI). Taking the time to make sure you are ready financially to take the plunge in the property scene, is critical.
Finding ‘the one’
Love is blind and so are you when you set your eyes on a house you love! You have found your match and your mind is made up, but no one ever jumped into a long-term relationship without running it past a trusted person first.
You have found a property you love, but sometimes below the surface of a property there can be financial pitfalls. Having building, land and pest inspection reports can give you peace of mind that the house you love is one that isn’t going to cost you thousands in the long run.
Making the commitment official
So now you are in love. This house is definitely ‘the one’ and you have just plastered a sold sticker over the sale board. You are off the market and out of the dating scene. This is when it starts to get serious!
Now the legalities, how is this going to work? Through the property search process you should make sure you have a solicitor or conveyancer review the contracts. This will limit the chance of experiencing unexpected terms and conditions of the contract and make sure you are fully informed at purchase time.
Taking your time to ask the solicitor and lender what all the costs are going to be, and reviewing the final figures when they are provided is critical. If you aren’t sure about something, ask the question. Don’t always accept that what they have in the documentation is correct.
You are madly in love and it’s everything you have ever dreamed of. You haven’t looked back and you are more comfortable than you imagined.
And then, you start finding the faults. The tap leaks, the wall is cracking, the back fence needs replacing. You thought it was all going to be smooth sailing. Once you are in your property, you are always going to find things that need repairing, replacing or removing. Ensuring you have a good financial buffer available for these unexpected costs will mean you can get on top of any issues quickly before they roll into larger, more costly ones.
Buying a house is a roller-coaster of a journey and if you don’t think it through properly, it can cost you a lot more than anticipated. Don’t get caught ‘off guard’ and make sure you seek advice from one of our experienced mortgage brokers who can help you finance your one true love.