Buying prime property in London is definitely a big deal given the ever-increasing demand. However, the procedure of going about the purchase is something that many people may not be well-versed in. Therefore, first-time buyers might be prone to make simple and avoidable mistakes.
However, you don’t have to lose any money due to simple mistakes whenever you want to purchase a property. All you need to do is take your time and do some research upfront. The following are five common mistakes that first-time property buyers are prone to and how they can be avoided bought to you by Just Us Global
- Don’t Overlook Research
Other than familiarising yourself with the process of purchase, never forget to do plenty of research on a property that you are interested in before you make an offer. It is imperative for any first-time buyer to do their homework and take some time to research about the particular property and any other similar properties within the area. This will help you to reach a decision on the best offer that you can make. Consider the demand in the local area as well as check out the competition and the performance of the property market in the area of interest.
- Never Make Assumptions about Your Purchasing Power
Sometimes we look at our dream prime properties and assume that they must cost an arm and a leg, just to raise their deposit. Believe me, this is not always the case and many people end up giving up on the hope of ever buying the property of their dream even before they check out the prices and conditions of buying.
For instance, first-time buyers of houses are likely to be paying rent while trying to raise a deposit for their own property. This might make many of them lose hope before they even begin. How about checking out whether there are any current government property buying schemes that can help you achieve your dream? Also saving some money, however little, every month might be the best starting point.
- Never Forget To Check Your Credit Score
Before applying for any mortgage, you need to contact a reference agency and request for a copy of your credit report. This will help you to check out whether you actually qualify for a mortgage or not. Missed or even delayed payments on your credit card, payment of a loan or even your electricity bill might affect your credit score negatively and this might be enough reason to deny you the mortgage. You need to identify such problems in advance and take the necessary steps to improve your credit score.
- Never Underestimate the Total Costs
It is always good to be optimistic in life, but when adding up costs of a prime property that you want to buy, it is a different case altogether. After saving for the deposit and getting a mortgage, in their quest to own a home, most first-time buyers forget to put into consideration any additional costs that might accrue in the process and after purchasing the property. Such costs include maintenance, ground rent, building insurance, parking fees, council tax, TV license utility bills and internet charges.
- Don’t Assume That You Need A 10% Deposit
Due to the rapidly rising cost of prime properties in London, a 10% deposit might just be too much to ask. You shouldn’t assume that you need a 10% deposit in order to buy your own property since, normally, this is not necessarily the case. It is possible to put down 5% of the total property value, in order to qualify to buy a property.
If you avoid the above five major mistakes that many first-time property buyers make, and then you can easily buy property without many hitches.
