Your first home: 4 myths about buying it
If recent statistics are to be believed, it’s understood that the average age for purchasing a home is quickly increasing. Ten years ago, 55% of 25-34-year-olds were homeowners. Now, this figure is down to 38%. As we all know, this is a topic that is covered a lot in the news. There is a lot of negative press about the process – mainly surrounding house prices and how they are pricing young buyers out of the market.
While we can’t disagree with the above, today’s article will take a look at some of the myths that tend to do the rounds about first-time buyers, and debunk them for good.
“You can move in as soon as you have the deposit”
As we all know, one of the biggest battles for a lot of prospective first-time buyers is scraping together that initial deposit. Once they have got this, the big misconception is that they can move in to their desired property straight away.
Unfortunately, this couldn’t be further from the truth. In truth, this is only the start of the process, and you’ll find that paperwork roadblocks (usually related to solicitors) as well as housing chains make the whole moving progress very frustrating indeed. Quite often, you’ll need to turn to local storage options and you could consider the opportunities for self storage in Cardiff to help you manage the move.
“You only pay the asking price”
Again, it might have taken you years to collect your deposit, but there can be some rude awakenings when it comes to pushing the deal through.As it turns out, there is far more to this than meets the eye. You’ll have to pay solicitor fees, surveying fees and in some cases, stamp duty. It means that you can be paying several percent more than you initially budgeted – which can be of huge significance.
“All mortgages are equal”
If you believe this next myth, you are probably set to lose a lot of money.Once upon a time the only way to get a mortgage was through the high-street. Now, things are changing. Brokers have entered the scene and while some will charge for you to use their services, there’s no doubt that they get buyers a much better deal with a lower interest rate.
It means that the days of having to settle for a 20% deposit are long-gone. Sure, this sort of arrangement might net you a better deal and lower your monthly repayments, but there are plenty of options out there and not exploring could be costly.
“The costs stop when you move in”
Congratulations, the deal is done. However, what tends to happen is that you then have to deal with a whole host of other costs. Granted, these costs are usually self-inflicted. A lot of people find they are desperate to invest in their home further when they move, whether it is with new furniture or even alterations to the home itself.You might assume that you won’t fall into this trap but as you start to fall in love with your first property, it can happen very easily.