What do I need to think about when buying a property?
You’ve seen your dream home and have fallen in love with it! For many of us, buying a property is both exciting and daunting. It’s easy to ‘feel’ a property’s ambience and be charmed by its individuality, but while buying can be informed by the heart, you also need to gather a substantial amount of practical information before making the decision to buy.
To help you make an informed decision, we’ve outlined a few things you need to be aware of.
How much is my mortgage deposit?
The mortgage deposit is likely to be the biggest payment that you will make when buying a new property. We recommend using a mortgage deposit calculator beforehand to determine when you will have the money for a good deposit. There are also various Government schemes available if you are a first-time buyer, so it’s always worth doing your research before you get started.
Will I pay Stamp Duty?
When buying a new property, you will likely owe stamp duty which is a property transaction tax. You will need to pay stamp duty on residential properties that cost over £250,000, but you may be able to receive a discounted rate on higher-cost properties as a first-time buyer. You can find more information on the government website.
How much is Home Insurance?
Before exchanging contracts, find out how much it costs to insure the property. We recommend getting as many quotes as possible to find the best one for you. Building insurance is a mandatory requirement for a mortgage, so it’s essential to get this set up.
What’s the Council Tax Band?
Council tax varies from postcode to postcode, so it makes sense to check how much you will have to pay month-on-month before buying. Council tax can vary depending on the area a property is in, or how much land it has but you can easily check your potential Council Tax liability on the government website. This will help you when calculating your budget.
Will my property go up in value?
If you plan to sell in the future, it’s a good idea to think about its potential resale value. Is it a good investment? If you need to spend money on it, will it enhance the property’s value? Will the area or plans for the area have an impact on the property’s value in the future? A good way to check on an area or a location is by looking at property websites such as Zoopla or Rightmove and check stats from the area. For example, looking at how property has gone up or down in value in the past can give you an idea of what may happen to your new home.
Can I afford the energy prices?
As we’re all aware, energy prices have increased over the past few years and may rise even more. So, it’s really important to get energy quotes to find out the potential price of your bills – this will help you budget for the future.
How much does conveyancing cost?
When searching for a property, you need to factor in your conveyancing fees. Conveyancing is an important process, as it helps prevent issues down the line, protects your investment, and makes the process much easier by handling all the paperwork and legal details on your behalf. At ONP Solicitors, we provide conveyancing services with clear up-front costs, and with our no move, no legal fee promise, you won’t pay our legal fees if your purchase falls through. We want to help make your ambitions a reality and make moving simple. Head over to our services pages to see how we can help.
