Buy a house and get yourself on the property ladder they say. It sounds so simple on paper, but for a first time buyer it’s not always that easy. We want to share with you our top 10 tips to help first time buyers make sense of the property industry but also help them get that all important deposit.
Firstly we will focus on the financial aspect for a first time buyer, as many of you will not even have a savings account. We will also go through the supplier aspects. This will include what costs you need to be aware of and who you will need to speak to throughout your first time property purchase. Finally we will give you some tips on what to look for in your new property, to help you future proof your investment.
First Time Buyer – Savings
It is essential for you, a first time buyer to have savings which can be put down as a deposit for your house. Take a look at the Money Saving Expert to find a savings account which suits you and which has the best interest rates. It is worth bearing in mind that saving for a deposit is a marathon and not a sprint. You may have to commit to this saving for a number of years.
You will need at least a 5%, possibly a 10% deposit for your property, so you will probably begin saving without a particular property in mind. We would advise that you take a look at the property market in your area so you have an idea of what properties are selling for to give you a guideline of how much money you may need to save. This will give you a goal which will make it easier in the long run if you have something to aim for, rather then be tempted to dip into it for holidays or luxury goods.
Do seek advice from a financial adviser. It’s a myth that financial advisers only assist the wealthy. They are there to help you manage your money and give you the best advice about your financial situation and in turn what the best deals are for mortgages are in the current financial climate. Be truthful with them, they are there to help you.
Financially there is not just the deposit to factor in when buying a house, there is the actual cost of moving and fees for professionals within the house buying process. Below we will give you a guide to which companies you will have to spend money with throughout the purchase of your first home.
First Time Buyer – Suppliers
We have seen first time buyers tie themselves in knots over the additional costs of moving house. They believe that because they have a deposit everything else will be taken care of. That is not the case unfortunately. When a first time buyer often thinks they have a 10% deposit, after solicitor fees and survey fees they find out that they perhaps only have 5% deposit left which then can affect their mortgage offer.
As we mentioned above it is crucial you seek advice from a financial adviser or mortgage broker before beginning your journey.
You will need to pay the following people money before you will complete on your house:
- Stamp Duty
- Mortgage Broker / Financial Adviser
- Removals / Van Hire (may not be essential but if you are renting and have your own furniture you may need to include these costs)
It is worth bearing in mind, depending on the property you are buying that work may have to be completed before you move in. If this is highlighted in the survey it may be something the vendors would be able to cover, but if not then you need to have this money available.
Before you find your first home we would advise that you contact all of the above companies to seek advise on what their costs are and also what the stamp duty will be on the size of the property you are looking to buy. Solicitors fees vary depending on the type of property you are buying. If you are contemplating buying a flat or apartment these can often be leasehold properties so get a quote for freehold and leasehold properties as they do vary.
First Time Buyer – Home Search
Rightmove is the most popular search site, and one that we advertise our properties on. It is easy to get carried away and try to rush your first purchase because you are bored of saving and want to get on with it. However, this is not a process to be rushed. Buying a house will be the biggest purchase of your life, and this being the first purchase is the most difficult because you are starting from nothing. Take a look into the statistics of property price increases in your area. If you are unsure how to find these, contact us by email and we will be able to help you out with this. You will then be able to make an informed decision from an investment point of view.
You also need to consider what stage you are in your life. Ask yourself how long you think you would like to be in your first time home?
Our Top 10 Tips for a First Time Buyer are:
- Save a deposit
- Appoint a Mortgage adviser and /or a financial adviser
- Appoint a Solicitor
- Check out all the fees associated with moving – Stamp Duty / Removals etc
- Think about how long you will live in your new place
- Research your new area thoroughly
- Take renovation costs into account
- Asses what furniture you will need, and the cost of appliances
- What is on your house wish list and what would you not compromise on.
- Additional costs for reports – home buyers and structural
There are many other factors to consider, but these will just help you to focus your mind and think about your future in your property.
If you would like to contact us to speak about any of the topics discussed in this blog, please do not hesitate to email or call us anytime. We are based in North Leeds but have a lot of local knowledge spanning the whole of Leeds.
At Fowler and Powell we are committed to providing a personal service when moving to a new house, hence our strapline ‘Moving Made Personal’ We are based in North Leeds. If you would like to discuss your home which is currently up for sale, put your house up for sale or would just like some guidance on the whole process, then please do not hesitate to contact us. Email: firstname.lastname@example.org
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The next blog in the series will be published in December. We will look at the motivation behind people moving to a new house, and assessing whether moving house is the right choice for everyone. Sign up here to receive blogs by email.
To view other blogs in our series click HERE.
We hope you have found this information useful, thank you for reading.
Operations Director and Co Founder
Managing Director and Co Founder