Buying your first property: 8 tips to follow!
Are you about to make your first property purchase? Follow our guide and advice to proceed with your acquisition with the assurance of an estate agent!
You are about to position yourself as a first-time buyer and fear making mistakes that could jeopardise the peace of your investment. Lack of experience in property matters is hardly reassuring given the sums of money involved. It is entirely normal to want to protect yourself from errors with potentially serious consequences. Follow the guide and our advice to proceed with your acquisition with the assurance of an estate agent!
1. Beware of all acquisition costs
The overall budget for purchasing a property is not limited to the advertised price. To become the owner, you will need to pay notarial fees and any agency fees – the latter are generally included in the announced price.
Elsewhere, consider all the costs that your move will generate. Renovation, decoration and furnishing work can represent significant sums. The simplest approach is to aim for a property that does not require investing all your savings. Keeping back some of the deposit you could put forward remains a not insignificant safeguard. Keeping some of the deposit you could contribute remains a worthwhile security measure.
2. Find out about the co-ownership
If purchasing within a co-ownership, verify its financial health: are any tenants in arrears with their charges? Also, are costly works planned? Everything approved by a general meeting is attributable to the owner who gave their agreement. However, projects are most often discussed several years in advance and appear in the minutes, which should be examined carefully!
Additionally, depending on your expectations, ensure the living conditions within the co-ownership and the neighbourhood meet your needs. If you prefer quiet, be wary of busy roads or ineffective soundproofing in the building. If you have a dog, identify the green spaces needed for walks. Every detail will determine your level of satisfaction in the long term, bear this in mind!
3. Correctly estimate the cost of living in the property
Once you become an owner, you will need to assume all costs related to the property and your occupancy. The mandatory diagnostics provide an initial indication, determining the amount of energy bills and giving an idea of the property’s insulation. Also, they can indicate whether work is needed if asbestos or lead is present, for example. In such cases, use this information to negotiate the property price down.
The amounts of council tax and, if still applicable, domestic waste tax should be taken into account.
4. Do not rush
Youthful enthusiasm must not cause you to lose sight of the stakes involved in a property purchase. To begin with, do not settle for just one visit. Sleep on it, and the examination of the property will be more detailed during a second – or third – visit, when the joy of discovery gives way to more practical reasoning.
If possible, bring a third party along who can provide an informed opinion with detachment regarding the property’s condition or your compatibility with it. All aspects must be mastered before signing your name on a purchase offer!
5. Do not approach only your usual bank
When taking out a mortgage, it is advisable to examine the offers from several banks. Competition is fierce and some do not hesitate to cut rates to attract borrowers. This also means the borrower will potentially take out several other lucrative services with the bank: opening account(s), buildings insurance, etc.
Do not hesitate to inform the different banks of the conditions offered by the others: this little game could enable you to benefit from highly advantageous conditions, provided you do not overdo it.
The simplest approach is to use a broker who will handle all these steps for you. Meeting each lender is time-consuming, as is examining each offer. Leave it to the specialist, who additionally benefits from conditions you would struggle to obtain, due to the volume of business they bring to banks. You will ultimately find that the broker’s fee is less than the saving their negotiation brings.
6. Check your eligibility for advantageous financing options
In this category, you will find the zero-rate loan you may be entitled to, subject to certain conditions, particularly income. Also, an employer loan may be accessible depending on your field of work.
If your budget is limited and your income falls within the set limits, you may be able to purchase a property through a rent-to-buy scheme. Increasingly often offered by social landlords particularly, it allows you to rent a property while deducting the rental payments from the final purchase price. At the end of a rental period set in advance, you may – or may not – decide to become the permanent owner of the property by paying an additional sum. A social loan may assist you in doing so, if needed.
7. Determine who owns what
If buying together, ensure the situation is fair and that the various scenarios are planned for in the event of resale. A property signed by two implies a 50/50 split. If happiness is present on the day of acquisition, the sale may result from disagreement. It is necessary to protect each person’s interests in advance.
Did one of you contribute a larger deposit than the other? Were the mortgage repayments perfectly balanced? What about everyday expenditure? Ask yourselves these questions and ensure you protect yourselves – ideally through a written agreement at the notary’s – against possible detrimental imbalances.
8. Think about the resale of the property
A property to your taste may not be to others’ taste. You feel good in it and are going to purchase it, but already anticipate its strengths and weaknesses, which you will need to justify when reselling!
Do not hesitate to list all the elements that will make this property desirable in the eyes of the majority, and budget for the essential interventions to verify they will be feasible. In particular, see:
- If work is needed: roofing, joinery, insulation or interior alterations will incur significant costs.
- If equipment needs replacing or will need to be replaced before resale: boiler or wood-burning stove, hot water cylinder, etc.
- If the decoration needs reviewing: presentable paint and flooring will facilitate the sale.
You probably intend to take possession of the property for several years. However, it is essential to plan for the costs generated by its maintenance throughout this period, as well as your ability or willingness to see it through. A presentable property will sell faster and better when you decide it is time!
Buying a property for the first time is a pleasant adventure. To prevent it from turning into a nightmare, take your time to examine all the aspects that will affect your future. Armed with our advice, you are now ready to begin your search for your little nest. Happy hunting!
