There are a range of things to consider when purchasing a new home, the rules are different from one country to the next, but in this article we will go over some generic guidelines for potential buyers & things they should look out for.
- Budget – This may sound elementary but making sure you have the appropriate budget before purchasing a home is fundamental, not only that, but it is advisable (if financially viable) to have a contingency of around 10% extra budget on top of the sales value of the home.
- Does the property meet your needs? – Another seemingly obvious point, but does the house have an appropriate number of rooms and range of facilities? (a 7 bedroom house would be unnecessary for only 4 people to live in for example, but for a home of 12 people, one bathroom would be unrealistic), even though these are extreme examples, it’s worth taking into account your personal requirements before buying a new house.
- The layout of the property – Does the property have enough free space and is it the right shape to support your furniture? (a long narrow dining room for example would be inappropriate for a large circular dining room table with 8 chairs), it’s important to take into account the floor plan and the layout along with your existing furniture before purchasing a new property.
- Financing the move – Do you have the finance or mortgage agreed and in place before you complete the move? Mortgage or finance applications are a fundamental phase in the process of purchasing any new property because in the absence of the cash to buy the property the move will not be completed, make sure you have the finance in place in time for the completion date.
- Deposits – Typically many home purchases require a deposit of around 10%, which requires that you pay upfront 10% of the gross sales value before the deal can proceed further, in the event you cancel the purchase of the property the deposit is then lost, so be sure you have chosen the right property before paying any deposits or entering into any agreements.
- [For international investors] Are you eligible to purchase property outright in the country you are targeting? – Different countries have different laws for individuals from foreign nations looking to purchase property in their country, ideally you would make use of expert real estate agents in the country you wish to buy property in, for example this estate agency advertising Hua Hin Property For Sale is a good objective example of such an agency (operating in the country of Thailand), but there are others out there, it’s recommended you use them to make sure you avoid any of the potential pitfalls of purchasing property overseas.
- Have you thoroughly inspected the property for any structural or general issues? – Any cracks in the walls? Any leaks? Is the boiler broken? Fuse box need replacing? It is a good idea to inspect the property thoroughly before making any decisions on a move, that way you can be prepared for if you need to hire expert help from a tradesman (which is another good reason for the contingency budget mentioned above).
- How modern is the property? – This can have a bearing on how soon the property will need to be renovated (which as you may imagine means you may incur costs in the near future). Many people prefer to purchase newer homes due to the fact that it is likely to be a longer period of time before any renovations or refurbishments will be required, this is another factor that is worth keeping in mind.
- Location & local amenities – Are there useful transport links and local amenities such as schools, supermarkets and parks nearby? Does the local area meet with your expectations and approval in terms of what you would like to be able to access in your local area? Purchasing property tends to be a long term decision for people, so it is to your advantage as a buyer to choose the area carefully before placing a deposit on a new house.
- How soon can you move in and does this fit in with your schedule on selling your old property? – Some people (not first-time buyers) have to sell a property in order to be able to afford the next property (along with making sure they have financing).This needs to be on schedule like all other milestones during the buying/selling process to make the purchase of the new home as stress-free and as smooth as possible.
If you adhere to the above guideline and exercise common sense as you approach the prospect of buying a new home, you should maximise your chances of a successful purchase and a satisfactory outcome no matter where or what type of property you are buying.
December 3, 2017