Purchasing a property is never a simple task. Whether it’s a new-build or an older house, your first step on the property ladder or the next move, buying a home is no small affair.
With many different hoops to jump through, processes to sit and wait through as well as hidden fees and costs to pay, the whole ordeal can leave you further out of pocket than you planned for.
There are however, a few different ways you can be financially smart when buying property. We’ve put four tips together for you below.
Find a project you can work on
Most properties you go to view will look substantially different to how you envision them to be once you’ve moved in. The ability to have foresight and imagination works wonders when buying a house, as to see it as a home, you’ll need to imagine it with all your possessions in.
To cut costs and save money, it pays to take your imagination one step further. Picture certain walls being knocked-through, new doors installed or a future conservatory extension added on. This way you might be able to settle on a property that has less than you want right now, but ultimately costs less.
By having a clear vision of what you’ll be able to add in a year (or five’s) time, you could save money initially by thinking long term.
Act on facts and stats, not emotions
It’s all too tempting to see that perfect, dream house and give in to the burning desire to drop everything and throw your money at it faster than you can say ‘I want it!’
This impulsive way of thinking can often stretch a buyer’s wallet a little too much. Even though you may have to walk away from the house that pulls on your heartstrings the most, looking past strong feelings of emotion can pay dividends cost-wise.
Instead of being led away by the cosmetic features of that perfect house, try pinpointing practicalities, such as proximity to public transport, initial maintenance requirements and overall cost of mortgage repayments. Although this might not seem as glamourous as you imagined, it can benefit you in the long run cost-wise.
Get a third-party opinion before committing
Having a professional inspect a property you consider buying is a cost that can seem like a minor annoyance at the time, but can outweigh repair and maintenance charges that may occur later.
With a proper property inspection under your belt, you can be sure that no hidden costs are going to come back to haunt you after you’ve taken out a mortgage on the house.
Put down a larger deposit
Whilst in theory, a smaller deposit is going to initially save more money in the short term, a larger deposit will reduce the size of your mortgage repayments, freeing up some of your finances in the long run.
Take out a bridging loan to secure a home quickly and avoid losing money
In certain situations, where you need to quickly purchase a property, a bridging loan can be a time and cost saver. This includes buying property at an auction, or when making a quick purchase before sufficient funding is available.
Put short, bridging loans help to bridge the gap between securing a property and getting a mortgage to repay it.
Bridging loans can end up saving you money. By taking out a short-term loan, you can prevent losing any money already spent on the purchase of a property. A good example of this is in an instance where you’ve had an offer accepted on a house, but haven’t managed to sell your existing home. Having the loan in place will ensure that the money that has already been spent doesn’t go to waste, and neither does your new home. When applying for this loan, it’s crucial to go through a reputable company that has a history of bridging finance in the UK, such as Finbri, for example. This will ensure that there are no bumps in the road when securing funding for your new home.