For many of us buying our first home and owning a property is one of our life goals. After years of renting, answering to landlords and trying to save money, it is a great achievement to reach this stage in your life, so it should be celebrated and enjoyed as much as possible. Having said this, moving from renting to buying isn’t always an easy transition and many aspects of your life will change that you may not have thought about. Keep reading for everything you need to know when making the transition.
Work out your finances
As any new homeowner will know, buying your first home is no easy feat. You have probably saved for years to get a deposit together and maybe had to sacrifice a lot to get there. Unfortunately, just because you now own your home, this does not necessarily mean that you can stop being mindful of your finances. Bear in mind that rather than your landlord carrying out any repairs or maintenance, you will now be responsible for such outgoings and so it is important that your monthly budget allows for some money to be put aside in case of emergencies. Your property may also be subject to factor fees, these costs cover the maintenance of communal areas such as shared hallways, fences and gardens and annual inspections. You will be asked to contribute to the factor fees for a set amount each quarter or month so it’s a good idea to budget for this extra cost especially if you aren’t used to it. Although month to month you may not be spending less money when moving from renting to buying, remember that all of your mortgage repayments contribute to your loan and therefore your own financial growth rather than someone else’s so it really is worth making the change if you can.
Prepare for a lifestyle shift
As touched upon, transitioning from renting to buying and owning comes with new responsibilities and so you may have to be prepared for a lifestyle shift. But don’t worry, many of these shifts are good things! As a homeowner, you have much more stability than a renter and can truly feel like part of a community. You don’t have to worry about renewing your rental lease or if your landlord will decide to sell up leaving you in an awkward position. This may also be the first time in your life that you have had free rein to change your property’s design, décor and furniture, all things which new homeowners normally love getting involved in. Particularly in the first stages of moving you may have to be prepared to spend a lot of money initially on new furniture and day to day items which were formerly provided by your landlord.
Think about the long term
If you are giving a lot of thought to buying a property then you are probably thinking about your long term life plans and finances and this is a major difference compared to renting. Buying a home is often viewed as one of the best investments you can make due to the strength and stability of the property market and the fact that in theory, all the money you put into it comes back to you. You could even consider renting your property out down the line to help pay off the mortgage and it could also be part of your retirement plan as if you decide to downsize eventually you can live off any profits.
Be as prepared as possible
If you are thinking about purchasing your first home in the near future one of the most important things to do is be as prepared as possible and do your research. Decide the budget you have available to you, the area, or areas that you ideally want to live in and what your top priorities are in a home. Working with a local estate agent can be a good way to keep up to date with new properties on the market and once you have found the right place for you make sure to employ the services of a mortgage advisor and conveyancing solicitor to help everything run smoothly. Make sure to get all the questions you have about the property answered before you commit to an offer as this is probably one of the biggest decisions of your life and you want to make sure you are making the right decision.
If you are getting ready to make the move from renting to buying then get in touch with our team for advice on everything from mortgage deals and applications to home insurance.