Do your research on your property love.
Love is blind. And so is property purchasing 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 4 points before you fall head over heels in love with the one.
- Lenders Mortgage Insurance
- Property inspections
- Closing costs
- Unexpected maintenance
Taking the plunge
You have decided to hit the property dating scene and you’re sourcing your options each weekend. You’re flicking through apps, 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 is an arduous process!
Whether it’s 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’re 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 suitor and your mind is made but no one ever jumped into a long-term relationship without running it past a trusted advisor first.
You have found a property you love but often below the surface of a property there can be financial pitfalls that are holding the property up. Having a building, land and pest inspection can give you peace of mind before auction day that the house you now love is one that isn’t going to cost you thousands in the long run due to maintenance.
Sealing the deal
You have received the tick of approval from those close to you, made your pros and cons checklist and you are in love. This house is the one and you have just plastered a sold sticker over the board. You’re off the market and you’re 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 that you request at inspections. Doing so will limit the chance of unexpected terms and conditions of the contract and make sure you’re fully informed at purchase time.
Taking your time to ask the solicitor and lender what the costs applicable are going to be and reviewing the final figures when they are provided is critical. If you’re not sure about something listed, ask the question about what it is. Don’t always accept that what they have in the documentation is correct.
You’re madly in love and it’s everything you’ve ever dreamed of. You haven’t looked back and you are more comfortable than you imagined.
And then, you start finding the cracks. The tap leaks, the locks need changing, the back fence needs replacing. You thought it was all going to be smooth sailing. Once you’re 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 problems.