411homerepair.com

Latest Articles

How Heat Can Damage Your Roof

Your roof is the most important place of your house. Throughout the years, it protects your property from intense heat, cold temperatures, heavy...

on Sep 13, 2019

What are the Differences Between Household and Business Waste?

Skip hires are easy-to-use, convenient, and dependable whether for domestic or for business purposes. If you are not sure whether you need a skip...

on Sep 12, 2019

4 Professional Home Plumbing Tips and Ideas You Must Know About

It can be a relief to own your own home instead of an apartment. There is no rent to pay, you can decorate your home how you like, and you do not...

on Sep 12, 2019

When Should I Replace My Air Conditioner?

Like everything else, an air conditioner doesn’t last forever. The average air conditioning system lasts as long as 15 years, depending on...

on Sep 12, 2019

10 Interior Design Tricks to Try Right Now

The smallest things can make the most impact if you are looking for ways to quickly decorate a new space or would like to improve on your current...

on Sep 3, 2019

Use a Budget Calculator When Considering a Property Purchase

by Nick Marr on Aug 27, 2019

Purchasing a house is probably the biggest investment that most people will make in their lives. It is a major step and in many cases will lead the purchaser(s) into a large, monthly financial commitment that will be in place for many years.

Before taking the massive step into home ownership it would be wise to consider a number of factors that will influence the potential outcome of committing to a house purchase.

Questions

First, take a long hard look at your finances. Are you able to 'make ends meet' with your current income and that of your partner/wife? Do you have money to save at the end of each month or does your lifestyle consume the whole of your income? Do you have outstanding credit such as car loan, overdraft, personal loan or credit cards with a roll-over balance? A full financial check-up may reveal whether you can or cannot afford to make that desired house purchase.

Use A Budget Calculator

Financial experts suggest that the amount of a monthly mortgage payment should not be greater than 35 percent of the total, after tax, income. With this information in mind, it is possible to calculate the maximum amount of monthly mortgage payment that would be manageable. By using an online budget calculator you will be able to estimate the price of the property you can afford.
It should be pointed out that this process should be carried out prior to starting 'house hunting' as setting your heart on a property that is beyond your means will only lead to unhappiness.

It pays to remain realistic, overstretching on a first-time property purchase could be more than disappointing if the house is repossessed by the lender and your credit rating becomes tarnished.

First Time Buyer?

For a first-time buyer, the lender will want at least a 10 percent deposit, possibly higher. You should consider how this will be funded. Taking out a personal loan for a deposit amount is really not the way to go. Parents are often the source of finance for a deposit in a first-time buyer scenario.

Equity


Of course, not all house purchasers are first time buyers. Those who already have started to climb the property ladder will mostly have 'equity' in their property. Equity is the difference between the total outstanding loans on a property and its fair market value. By making regular monthly payments to reduce the total loan amount, plus any appreciation in the value of the property, leads to equity being accrued.

Be Realistic

The most difficult aspect of homeownership is taking the first step on the ladder. By being realistic in purchasing a property that is comfortably within your means, it can lead to a progressive climb up the ladder until the 'dream home' becomes a realistic proposition.

Motivation To Move Home

For those who have been homeowners/mortgage payers for some time, the decision to move may have many motivations. For older homeowners whose children have grown up and 'left the nest' there may be a desire to down-size to a smaller house or bungalow and retire to the coast or countryside. Under these circumstances, it may be that maintaining a small, manageable mortgage on the new property will free up cash to help out the 'kids' or pay for a luxury holiday for the homeowners.

In conclusion, the best way to purchase a new house is to put down the largest deposit you can afford. All money borrowed in a mortgage will attract interest which will add to the total you have to repay. Do not use personal loans or credit cards to raise cash for a deposit, this would be a false economy and potentially ruinous. Being realistic in what you can afford is the key to a successful house purchase.

Author

Nick Marr

Nick Marr

Nick Marr is an Entrepreneur, Digital Marketing Executive, Leadership Coach and founder of several online businesses. Nick works with thousands of real estate agents worldwide as the founder of overseas property platforms Europeanproperty.com and Homesgofast.com.

Sponsored Articles

Random Articles

What is the Purpose of Skirting Boards?

Skirting boards are also known as baseboards and they have been on the market for many years, Americans usually refer to them as baseboards, while...

Improvements / Remodeling

How to Choose the Best Step Ladder for Your Kitchen

Unless you are the tallest man in the world, you are going to need a step ladder at some point in life, especially when working in the kitchen....

Tools / Woodworking

Things You Can do to Maintain Your House

The best way to maintain your house is by doing the house renovation and maintenance. A renovation is changing the entire settings of the house....

Cleaning / Maintenance

The Best Glass Garage Doors for Restaurants

Restaurants have different sizes and features. But so do garage doors. When they meet each other, they make the perfect pair for all the right...

Doors / Garages

7 Tips on Maintaining Your Lawn from Professional Lawn Care Companies

One of the very first things that people see when driving past your home is the lawn. An attractive and well-manicured lawn is very pleasing to the...

Garden / Landscaping / Patio

Actions

Contact Us | Submit Article | 411homerepair © 2019