Things to consider before buying a house in the UK in 2021
Buying your own house in this generation is not only a significant milestone but it is also a major responsibility. Owning a house is not as easy as it seems, you have 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 in the UK. The decision of buying a real estate property is quite a commitment and a challenging time, much more than the choice of which home you would like to buy.
Real estate property in London comes at quite a high unreasonable price. This is the exact reason why you should not settle and find the best fit for your needs, and also consider these factors before buying a house in the UK. Here I have listed down some of the factors you should consider before buying a house in London.
Table of Contents
Security is one of the most important factors considering that you always have to take your safety as a priority when you’re already on the property. It is reasonable that we must choose the safest living space especially if you have a family to raise, and also the crime rates in London are continually going up. You can’t sleep all night and keep you awake, and being paranoid out of your mind thinking a burglar might break-in in your property? Best solution is to call a local CCTV installer and have an active surveillance system on-going in your property area.
Owning a house is a great feeling to have, but purchasing a house is a long-time commitment. Ask yourself first, if are you ready to buy a house? You will be tied up to the bank through what they call a mortgage for years unless you have enough money to pay it in full amount. That is why financial stability is one you must consider before buying your own house. Make sure that you are financially stable with your job that can handle your finances before getting a house.
Make sure you have enough savings to cover-up the payments incase of an emergency situation like losing your job, or you had a medical emergency. This would put you into big trouble and huge debt if you missed at least one payment to the bank. You should plan ahead of time of your finances and segregate the budget.
Living in a house that you can call home is the goal. There’s no point of getting a house that you are not comfortable living in. You must take into consideration the location and the neighbourhood you want to live in. Ask yourself this, do you see yourself living there after five years? Ten years? Twente years? What is your main goal or plan living there? If your answer is “No” and your plans take you far away from your house, then it’s not the perfect house you want to live in.
For example, if you want to take Computer Science in College but your area doesn’t offer that kind of course. This is the reason why you would plan ahead before buying a house in the UK.
Duration of Stay
Speaking of duration, you should also consider just how long you are planning to stay in that specific area or country. You should only get a house when you and your partner have already decided to settle in that specific area. If you are planning to go abroad then you should rent a house instead of buying a house. Renting is a much better option when there is a high possibility of you having to move to other areas around the country.
Saving up for the down payment is one of the biggest obstacles that comes when buying a house. You will be tied up with your bank with the payments, your bank will handle the majority of the price of the home and you will pay them with interest around 20-30% of the full value, the interest depends on the interest rate of the bank and the number of years in term. It is quite big but it will save you money in the front-end.
It would be best if you delayed purchasing a house for another couple of years, where you will save up for a huge down payment. Taking a massive amount off of the principal amount will mean that the bank loan is going to be smaller. It means you will relate to a lesser interest that you have to pay in your bank.
When looking for a house to live in, one factor you should consider is what your future needs are. Having a 2-bedroom apartment is enough for your needs right now, it may not fit you with your family moving forward in the future. If you plan to have kids, then you must consider this before buying a house in the UK. Also keep in mind that the bigger house you get, the higher the price you will pay.
Current Mortgage Rate
They say that mortgage is the biggest headache when owning a house based on the majority of the homeowners. You need to add in the list the mortgage of your house in your budget aside from the monthly bills like electricity, gas, water bills, and food. Just do the budgeting ahead of time to avoid problems in the future, this could cause you a passive part of your salary every month.
Asking help with your local mortgage broker will save you a lot of your precious time as they understand the market and have profound knowledge about the suitable mortgage rates and loads for you.
You need to plan ahead of time and survey the area where you want to live in before deciding to buy the house. Those are the factors you need to consider before buying a house in the UK.
If you have anything to add in the list, don’t forget to comment down below. I’ll be happy to see it.