Owning your own home is a dream for many people. But before buying a property consider all the financials. buying property can be a very good investment and has many advantages. So what are the things you have to take into account before you take that leap.
Some points to consider before buying your dream property.
We assume your calculations regarding bond repayments etc are done and you have been honest about you expenses. But did you take the following things in account.
- Is the loan the close to the maximum or maximum you could afford? Did you budget for any future interest rate increases?
- Do you know what your rates, taxes and levies are. These costs can be high and will increase yearly.
- If you move into a larger property/garden your electricity and water bill might increase.
- Regardless of it’s age a property requires constant maintenance. Don;t neglect maintenance as it will become more costly over the years. An badly maintained property can be a reason for building insurance to refuse a claim.
- Did you budget for building insurance? Anything can happen like fire, storm damage etc.
- Can your loved ones maintain the repayments in case something happens to the breadwinner ? Maybe now is the time to take out life cover
Property is a long term investment and shouldn’t be bought and sold on a whim. With transfer costs and duties it might take a while before your property can be sold with a profit.
If you have taken all these things in account enjoy your home.