The big question on everyone’s lips at the moment, whether they are looking to invest in the property market or find their new home… Should I buy a property?
With a market that has seen so many ups and downs over the last 3-4 years, it is understandable that buyers are becoming more cautious when considering their next step (or maybe even their first step) on the property ladder.
Kirstie Philpott’s series of residential property blogs “Should I buy a property?” answers your questions about buying property in today’s market, including where to get started, what considerations you should make before making an offer and how to assess your financial position. The series looks at all property types including houses, flats and new builds.
Whether you are new to the property market or have already bought and own a home, before you make any major steps in the house buying process, you should be monitoring the market to see what’s available. The property market reflects changes in our ways of living, and in a post COVID world, certain types of property may be in more demand than others.
You should start by searching Rightmove, popping into local Estate Agents and checking on Developer websites to see what is available. Generally you should be making a note of what kind of property you are looking for and should consider the following questions:
Do I want a house or flat?
Houses are typically freehold, which means you own the whole of the property and land absolutely. You will likely have complete autonomy over the property and land that you buy (subject to planning restraints). However you should also consider the additional responsibilities on you with regard to maintenance, it will be at your sole cost to keep the property and land in good repair and condition.
Flats are typically leasehold, which means you would be purchasing a long lease interest in that property from the freeholder who owns the whole building and land which it sits on. You may have to pay an annual ground rent to the freeholder and you will also need to contribute towards the cost of maintenance and services for the whole building. Leasehold properties can also come with additional restrictions for refurbishments/extensions to your property, so you won’t have the freedom you would have with a freehold property.
How many bedrooms do I need?
How big do you need your property to be, or how big can you afford? In most cases the answer will hinge on what your budget is, but even if you can afford more bedrooms in the initial purchase with mortgage and equity, do you need them? You should consider that the bigger the property; the bigger the bills… more bedrooms is likely to mean higher council tax, higher electricity, higher gas etc.
With the cost of everything rising, the more you borrow will mean higher monthly payments, with the possibility of further increase should your interest rate rise in the future. You may end up begrudging that fourth bedroom that you are just using for storage and drying washing.
What kind of style? – Terraced, semi-detached, detached, new build, listed building etc.
When it comes to detached and attached properties you should consider what your preferences are. Your budget could afford a three bed terraced or a two bed detached, which would you value more?
If your preference is a character style property, then it’s possible it could be a listed building. Listed properties have more restraint when it comes to decoration and alterations, you may also find yourself open to higher costs should it require repairs, as materials need to be replaced like for like. Listed buildings are also more likely to come with poor energy ratings, so you could find yourself with higher bills for heating.
New build properties are attractive because of the incentives developers can offer, whether it’s discounts on price or a particular finish on the property’s décor. However, you should also consider that the majority of new build developments now come with private roads and communal areas, which are maintained by a management company. You should factor in additional costs for service charges payable to the management company in maintaining those areas. You should also consider the impact that it could have on you living on a building site, developers usually release houses for sale in blocks so it is likely that there will still be other properties being built on the site for the beginning part of your ownership.
What location do I need/want? Local, remote, estate, town centre?
You may need to live close to public transport, or you might need to be close to certain schools if you have children.
Some locations may be more desirable than others and that can drive prices up, so you will need to weigh location up against price.
Being closer to a town centre could mean more planning restrictions if you were intending to develop or structurally alter a property.
Being more remote can mean no mains drainage which means you will need to factor in the costs of a private drainage system, which can be costly if they are not compliant with government regulations.
What are my deal breakers?
“I can’t live in a town centre”
“I have to have an ensuite”
“I won’t live next to a supermarket”
“I need parking for three cars”
“We need to be close to the school”
“I don’t want a big garden”
Everyone’s needs and wants are different so you should think about what your absolute show-stoppers are.
It might sound wacky to turn down the perfect property because it doesn’t fit your business van on the drive but your property needs to be suitable for you and your needs. You need to be able to live in and enjoy it after purchase so making a note of your deal breakers is a good idea.
The question that will shortly follow all of the above will be, well… can I afford that?
Be sure to follow up on the next part of this blog series which covers concerns over your budget when buying a property.
If you require any further information, please contact our Residential Property Team on 0345 646 0406 or fill in our online enquiry form and a member of the team will be happy to assist you.