Most of us own a property or aim to own a property in the coming years. Since ages, owning a property has been a symbol of status, security and importance. Property is an asset that appreciates slowly but significantly over a period of time, and isn’t as volatile as most other assets. Well, assuming we don’t witness another sub-prime crisis of the extent of 2009!
Before starting the journey of property hunting, there are things to note including administrative processes, rights, taxes, responsibilities etc. We assume that you have read up on basic things such as prices, location significance, neighborhood and average price increases in the area. Let us look at some key items you should be aware of that the average home buyer doesn’t think of.
For a decade now, global interest rates have remained at a historic low. In the UK, it has hovered around the 0.5% mark. However, with reports that the bank of England is set to raise rates above the 0.5% mark, home buyers should exercise caution. Borrowing mortgages, especially considering the average price of a London house, and rising interest rates don’t go well together. Funding part of the investment with a downpayment is recommended.
Negotiation doesn’t end
There are cases where negotiations are finalized, a contract is signed and something new pops up during further home inspections. Remember that your negotiation when buying a property should always be active till ongoing inspections are complete. You don’t want to have unpleasant surprises after you move in!
We know you want to have your own property, and we understand. However, owning a home comes with its own set of hassles. Consider, perhaps, an option of a long term tenancy, which can be available for 99 years or 199 years depending on where you are located at. It offers the same benefits of ownership such as security and stability, with less hassles.
These are just three aspects to consider before signing on the piece of paper. A thorough evaluation will ensure you don’t have regrets later.