5 Reasons Why You Need A Financial Safety Net When Buying a House
Buying a property can take a long time. Especially if the people you are buying the property off are, themselves, part of a chain or if they are reluctant to move out.
Getting all the proper documentation ready, making sure your loan application goes through properly, Exchanging ownership, getting the keys, getting a professional survey, there is a whole list of things that you need to do and that could possibly go wrong before you finally own the property you may have had your eyes set on for months.
However, you’re not out of the storm yet.
Once you have completed all the necessary paperwork, you’ll want to go back and have another look at your new property, taking into account what may need repairing or renovating before you are able to move in.
Perhaps there are improvements you’d like to make that require access to the whole house. Perhaps there is some faulty wiring that you need to get fixed before your family can move in. The possibilities are endless.
Hidden defects, faults and reparations needed are a few key reasons why you need the extra budget or a financial safety net for when you first buy a house.
If you don’t have that extra cash saved up, you may have to sit in a flat for a few months while you earn the money to be able to fix that leaky roof, or to pay that electrician to sort out the wiring in the upstairs bathroom.
We’ve put together a short list of five reasons why it is essential for you to have a financial safety net when buying a house.
Furniture and Appliances
Not everything you have in your old home will be transferred over, so you need a bit of budget for new furniture and appliances in the new property.
Again, some property owners prefer to take their appliances with them, so you’ll need to make sure that you have everything you need to live comfortably.
While furniture is not a direct necessity, it is important that you start thinking about budgeting for new furniture, instead of waiting until you are all moved in and all you have is a couple of lawn chairs.
Budget Needed for Renovations
You may already be thinking of the renovations you want to conduct in your head as you first walk through the door. For those renovations to be possible, you’re going to need a budget.
There are project managers who will be able to provide advice on how to best go about property renovations and will also keep the project in the time and budget scales, making it easy for you to go ahead with renovations with a budget in mind.
It is often recommended to get a professional to help you, particularly for property-wide renovations, as a project manager is less necessary for smaller, one-room renovations.
Electrical or Heating/Water Faults
Poor wiring and faulty central heating systems can cause irreparable damage and even jeopardise the safety of family members, so it is important that these are properly looked at as soon as possible.
Even if you consider yourself a bit of an electrical techie, if something goes wrong it could be even more expensive to fix, so a professional electrician or engineer needs to be called in the event of faulty wiring or central heating.
Cost of Moving
You will need to hire moving vans, or at the very least pay for a meal for a few very good friends. Moving can be done expensively or cheaply, depending on how much stuff you have to move and whether or not it is feasible to do in your own car.
If you have to hire moving vans and unloaders, you’re looking at an extra fee added to the rest of the extra charges you will have to pay after buying your property.
Hidden Defects or Potentially Damaging Defects
It is a good idea to set aside part of a budget for any hidden defects or sudden defects brought to light by a survey.
Defects can go undetected for a number of years and end up becoming a real problem, such as leaking roofs, damp and mould, so it is important that you seek to resolve any defects or repairs needed as soon as possible.
A surveyor will be able to assess the extent of the damage, sometimes even giving advice on what can be done to resolve the issue.
If you have not yet had a detailed survey conducted on the property, it might be a good idea to do so in order to avoid potentially crippling repair bills later on down the line.
Of course, you may have prepared for the worst, only to find that when you come to move in, all you need to do is a cursory once over with the hoover.
However, it is better that you have that financial safety net to hand in the event of any emergencies, instead of being left in the lurch having to wait until you next get paid in order to fix any desperate repairs that need doing in the house.
A detailed report and survey should have given you an idea of what is good and what needs repairing or resolving when purchasing a property initially, but some buyers choose not to have a survey conducted before they make an offer.
While professional surveyors can be expensive, in some cases it is well worth the money to find out the complete extent of any repairs needed before you move in. Still, having that financial safety net is great as it allows you to get on ahead with repairs and renovations straight away.
Article provided by Mike James, an independent content writer in the property industry – working alongside a selection of companies including Bedfordshire-based Chartered Surveyors Alan Rance, who were consulted over the information contained in this piece.
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