Whether you’re investing in a second property, or you’re on the hunt for your dream home, setting a budget is crucial. If you’re ready to make your next move, here are some tips to help you manage your money and secure the perfect property.
Calculating how much you can afford to spend
Unless you have an unlimited budget, setting a maximum purchase price is a vital element of the property search. Before you start booking viewings or filtering listings online, figure out how much you can afford to spend. How much are you putting down as a deposit, how much can you borrow and are you waiting for your current home to sell to fund your new house? It’s critical to make sure that you have a realistic figure in mind and to ensure that you don’t stretch yourself too far. You don’t want to be living in fear of missing mortgage payments or be unable to enjoy life as a result of money worries. If you are looking to buy at the same time as selling, it may be worth looking into bridging loans if your home takes longer than expected to sell. It’s also wise to bear in mind that the property might not sell for the asking price when setting a budget for your new home.
Getting the best deal
Some properties sell like hotcakes, while others linger on the market for months, even years. If you find a property you love, and you want to make an offer, think carefully about how much you want to put on the table as your opening bid. In some cases, where a house is likely to sell very quickly and the market is buoyant, you may need to go straight in at the asking price or even pay more to secure the property and prevent other buyers from making offers. In other cases, you might be able to negotiate a significant saving on the asking price. If the house has been on the market for a long time, or the vendor is desperate to sell, for example, there should be room for manoeuvre.
Adding value and looking for potential
Some buyers are looking for a home they can move straight into, but others are willing to take on a rough diamond in a bid to make it their own and add substantial value. If you can’t afford your dream home in a pristine state in the perfect location, taking on a project is a great idea. You get more for your money in sought-after areas, you can customise the design to suit your taste and you can add value so that you benefit when you sell up. If you are interested in renovating or extending a house, make sure you analyse the costs in advance and factor in these fees when you draw up your budget.
Are you looking to buy your first home, are you selling and trying to buy at the same time, or have you decided to invest in a second property? Whatever your circumstances, budgeting is essential. Before you start your search, make sure you have a firm grip on the figures.
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