Home Buying Mistakes You Need to Avoid

| November 11, 2014

When it comes to buying a house, everyone thinks that this is a good move to make. Wrong. Not everyone is in the right position to buy a property. While there is a considerable amount of onus placed on those who rent, to buy, there are some common pitfalls that you need to avoid. After all, buying a property is a significant investment. You don’t want to tie yourself to a mortgage for over thirty years and not be armed with the facts.

It’s time to take off the rose-tinted glasses and start looking at how to avoid common home buying mistakes. Your financial health depends on it.

Don’t Break the Bank

While it may be wise to save more of a deposit so that you are not faced with negative equity, you don’t want to break the bank to save for a mortgage. If you don’t have the cash available, now is certainly not the right time to start investing in bricks and mortar. You need to consider your outgoings. What is more, you need to consider what you will do if you lose your job. With only one income, can you afford your property?

 

While many people look at top end figures, they often neglect what will happen should the worst occur. Stretching your finances to breaking point leaves you very little wiggle room at the end of the month. This can have a detrimental impact on your overall finances. Be savvy and consider taking out a smaller mortgage. You don’t have to mortgage out to the max. A 3 bed Maisonette for sale in Tavistock is still a savvy investment. You don’t have to go for a country manor in the middle of nowhere.

Make Sure That You Are Settled

If you are prone to regularly moving  and you are not happy in your current location, is it worth buying? Do you really want to be tied to the property for all eternity? If you are something of a mobile creature, settling down and opting for a mortgage is not a savvy route to take. If you are looking at expanding your family, or you are looking at moving abroad, now is not the time to invest in property. Wait until you’re settled and get the most from your money. Plus, this gives you more time to save a bigger deposit. It’s a win-win situation all round.

Have You Factored Added Costs?

While it may be tempting to go for a larger house with all the modern features, have you considered additional costs? You may be able to fulfil the mortgage repayments, but have you thought how you will pay for a leaking roof or a boiler breakdown? Taking into account other costs is imperative when you are looking at buying property. You should be considering taxes, estate agents fees, maintenance costs and property taxes. All of these things can eat into your budget. It’s about being savvy with your money. You don’t want to face financial hardship because you didn’t factor all added costs.

Category: Save Money

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