Buying a house can be a financial nightmare, particularly if you are fresh into the big bad world of owning property.
It is getting harder every day for young couples to be able to purchase their own home. But, that does not mean that you should give up on your dream of owning property.
There are ways that you can make it easier and purchase the house you want. First, you will need to consider the problems that come with spending an amount of money this big.
Can You Afford To Buy?
The first question you should always ask when purchasing a property is whether or not you can afford it. Remember, that we are not just talking about the price of purchasing the home. We also mean you need to think about the bills that you are going to have to pay and of course, income tax.
When looking at a property you need to check the level of income tax in that area. Also, be aware that higher end homes are often in a neighbourhood that is cleaned and looked after by a private company. If that is the case, you will have to pay another bill towards upkeep. You would be surprised by the type of areas that have this cost. We are not just talking about gated streets.
Is It The Right Time?
You need to check the market because it may not be the best time to purchase a property. If house prices are high, you could be gouged on the price of a property and be asked to pay more than you should.
If house prices are low, you still need to research the market and find the average price that you will be expected to pay. You do not want to be in the position where a seller of a home knows more about the market than you do.
Is Your Past History Clear?
It is highly unlikely that you are going to have enough money saved to pay the full price of a house. You are going to need to get a loan from a company in the form of a mortgage. The problem is that if you have a bad credit rating then you are going to have a hard time getting a company to agree to give you a loan.
If you do, they may charge a phenomenal interest rate that could eventually leave you in serious debt. Your credit rating will have been affected by how well you have fulfilled financial commitments in the past, such as paying the rent.
Do You Know How To Haggle?
Your last financial question to ask yourself is whether or not you know how to haggle. You will need to if you want to get the best price on a house. Remember, when it comes to paying you will be dealing with an estate agent, not the owner of a property.
You will need to use techniques to ensure you get the price of the property to the floor. When making an offer be realistic but always start below the asking price. You will have a good chance of paying less than you would expect for the home this way.