Factors you should look at when buying
ONE of the biggest considerations when choosing to buy a home is where to live.
Family, friends and finances all play a part, but what other factors should you be looking at when deciding upon a specific property?
Rob Weaver, director of investments at property crowdfunding platform Property Partner, said: “Putting aside all other factors, choosing where to live often comes down to two things; where you work, and what your budget is.
“Developers market heavily to first-time buyers, but are you really getting a good deal? Buyers beware: be prepared to pay a premium, sometimes as much as 15 per cent, for the privilege of living in a new-build.
“First-time buyers might be better off targeting existing stock.
“Recent tax changes, like April’s stamp duty hike, are squeezing the profits of traditional buy-to-let landlords.
“As they quit the market, there’s a real opportunity to pick up bargains.”
It is also essential as a potential purchaser to watch out for ground rent and service charges.
Rob said: “It’s worth reading the small print to check how often the ground rent is reviewed.
“It used to be every 25 to 30 years, but nowadays some developers are conducting 10-year reviews linked to RPI.
“Service charges can also really hit first-time buyers in the pocket.
“I’ve seen two-bedroom flats with annual charges of £2,000 – that pays for a lot of gym membership. So it’s worth considering whether you’re getting value for money.”
Rob added: “If you’re buying an older property, make sure you get a thorough survey done to establish its overall condition, the quality of the boiler, pipework and electrics.
“And if you think you might need to rent the property out at some point, make sure it’s energy rated above F and G - otherwise, from 2018, you won’t be able to get tenants in.”