Owning a property in the current scenario (after Brexit) really creates jitters. But, many of us would have dreamt of being proud ‘Property Owners’. The title itself sounds amazing isn’t it? There are many things which need to be looked upon before buying a property. Among them, we are going to discuss the predominant ones in this article.
It is always wise to plan your long-term investment by checking the pros and cons involved in it. Prior to that, we should also look into our financial status- whether we can afford or not. As you all know, the Brexit has brought in its due advantages as well as disadvantages. Overall, we can say that the house price growth has been recorded in double digits in some cities whereas in some the situation is upside down.
House prices grew by 2.7 percent in the UK’s biggest 20 cities. On the contrary, prices fell in the year 2018. This scenario was witnessed in Aberdeen, Cambridge, as well as London and the percentage includes 6.1%, 3.8%, and 0.2%.
If you are planning for a long-term investment, then it is always advisable to go with buying a home. As the prices in the private renting market have ballooned considerably, becoming a property owner is always a nice option. Before arriving into such a decision, you should know these five things.
Know your affordability:
The main pre-requisite in this process is to know your affordability before-hand. Your dream may be really high. Hence, it is always appreciable to calculate how much you can borrow, how much money you can afford, and the like.
If your deposit is in a bigger manner, then there is a guarantee that returns will be prevailing in the future. But, you should also see to it that you save some amount in the present scenario.
Enhanced Credit Score:
A better credit score speaks a lot on your behalf especially at the time of mortgage deals. An average or a poor credit score will definitely mar your chances of laying hands on mortgage approval.
Even lenders will have a look at your credit score for making their investments. If you want to know your credit score, there are many agencies which provide you the data. They are: Equifax, Experian, and the like. One thing which you should make clear is that you should not be penalized for old debts as it will create a bad impression in the mind of the lender. They may also doubt your credibility in terms of repayment of your loans.
Mortgage Agreement in Principle:
Mortgage Agreement in Principle comes to the foray once you are done with all sort of preliminary works in buying a property. It includes sorting your finances, affordability calculation, as well as deciding on the property you wish to buy.
This Mortgage Agreement in Principle is a reliable as well as a valuable agreement between you and your mortgage lender. As per the agreement, it will be crystal clear that the lender is ready to lend you the amount you sought for.
Nowadays 90% of the estate agents regard this Mortgage Agreement in Principle as a mandatory document which carries the needed weight at the time of buying a property.
Mammoth Stamp Duty:
The most important and unavoidable thing is the Stamp Duty. It really involves a lot of amount. The Stamp Duty revolves around the value of your property. You will be deemed lucky if you are a first time home buyer.
As per the Government rule in the UK, first time home buyers are shown some consideration in terms of exemption. If the first time buyers are laying hands on the property worth up to £500,000, then they are thoroughly exempted from paying the stamp duty on the first £300,000. Sounds great isn’t it?
So, in the case being a first time buyer, you will be required to pay only £10,000 as stamp duty.
There is also a catch involved in this. If your property is worth more than £500,000 then you will be asked to pay the normal stamp duty even if you are a first time home buyer!!!
Savings Account_ Is it really healthy?
Once you have planned to buy a property, be it any place, your aim should be to save ample amount to reach your destination. Depending on the amount you have saved, you can buy one. There will be definitely different types of properties for sale in London. But, the property available for sale in Battersea is something unique because it boasts of all kind of properties such as country estates, city apartments, villas, and what not.
In order to buy one, it is mandatory that your savings should always be healthy.
In order to become a proud property owner, you should focus more on the above said aspects so that you can cherish your dream forever in a good and peaceful manner.