Tips For First Time House Buyers

As you guys know, I bought my first home two years ago. Since then, I like to think I’ve gained a wealth of knowledge about house buying that I previously had absolutely zero concept of. For first time buyers especially, the whole process of buying a house if bloomin’ difficult! No one tells you what to do, you’ve never done it before and there are SO many different steps to consider, not to mention you’re about to spend the most money you’ve ever spent in your entire life… Eeek!

Of course, I’m no expert, but as I’ve been on the journey to buying and doing up my own little house all by myself (I’m a poet and I didn’t know it!), I like to think I may have a little bit of knowledge to share that could potentially help any first time buyers reading this. At least, that is the sentiment behind this post! Please feel free to share any of your own tips and advice in the comments section below.

Use a Help To Buy ISA

If you don’t already have a Help To Buy ISA, sign up for one right now! This really helped me in saving money for my first home, as for every contribution you make, the government will add in a set amount each month to help boost your savings. Of course, it’s not life changing and not like you’ve won the lottery, but it is essentially FREE MONEY and who doesn’t like that?

Use a Mortgage Advisor

I can’t recommend using a mortgage advisor enough! I tried for months to understand mortgages on my own. Apply for certain amounts. Get rejected. Try and understand rates. Try and understand fees. Go back and forth and stress myself out. Until my family friend recommended using a Mortgage Advisor – and my life changed!

I used a Mortgage Advisor who charges a fee, but I do know that there are some advisors that work for free as they recieve a hefty commission for signing clients up to certain banks. For me however, the fee wasn’t a problem as I knew this would get me some great impartial advise – and it did! She sorted out all my paperwork, told me in black and white exactly what I could afford (and more importantly, what I couldn’t) and was pretty straight forward in letting me know what decisions were sensible and which weren’t, which quite frankly I needed!

Save A Little Money Monthly

Don’t get me wrong, I had saved pretty much my whole working life (5 years) before I got enough money for a deposit. It’s a long slog and it takes a long time, especially if you’re still working your way up the career ladder. However, by putting some money aside every month I was able to mount up my savings over time to ensure I had a big enough deposit to purchase my first home at 26 years old.

I also never felt like I had to scrape money together to survive, as I ensured I put a sensible proportion away a month as soon as my salary was paid into my bank account. In my mind, I knew that this couple of hundred pounds was almost ‘untouchable’ and as I never allowed myself to spend it, I never missed it. Instead of going hard and fast with hefty savings amounts over a short period of time, I slowly built up my savings to ensure that I was still able to go on holiday, go out, have fun and save up at the same time.

Consider The Long Term

Of course, if you’re a house flipper, then you only look at properties in terms of their potential. But when buying your first home – especially if you hope to settle there for a few years – it can be hard to overlook the changes that need to be made to a property before anyone could rightly call it home. For me, my house was rented out before I got there and the tenants hadn’t taken good care of it at all. In fact, it was a state and I had to completely renovate every room!

However, viewing the long term helped me see the value in doing up the house myself.

Looking at similar redeveloped properties in the area and keeping an eye on house prices can help you consider how much profit might be made, or how well you might invest. On top of that, searching the house prices over the last twenty years in a certain area might help you predict the future. Are more and more businesses investing in the local area, and have house prices gone steadily up? This might signify a place worth investing in, provided that this corporate interest doesn’t lead to excess home construction. Conversely, could it be that house prices in the area have been very unstable, despite the home itself seeming like a great deal? You might proceed with more caution.

Get A Second Valuation Opinion

Estate agents are professionals, and as much as we might hate to admit it, most of the time they know exactly what they are talking about. However, because they are so sharp and also motivated to make a sale, they can often convince you of the benefits of a home while eschewing the negatives. This might not lead you to terrible investing decisions, but sometimes, it might not lead you to the absolute best. This is why it can be worthwhile to get a second valuation opinion, perhaps from an independent source or someone in the local area who has purchased recently. Of course estate agents own the rights to show you around particular houses so it’s probably best not to ask another estate agent to value it too. But you can opt for similar properties in the area, ask them both about the history of the area, among other relevant questions. This can help you come to a much more informed viewpoint.

Thinking Beyond Your Borders

Now, this is advice I didn’t follow myself – having moved just down the road from my family! – but before I bought my home I actually spent some time living in Utah to see what living beyond my personal board would be like… Turns out it wasn’t for me, but I am glad I tried it out to get it out of my system anyway!

When we think of moving home or buying a house for the first time, it can be easy to simply think of the location surrounding us. This is because when we picture the location of our life on a daily basis, we rarely think outside of a 30 square mile radius unless we need to commute. Of course you know the rest of the world exists, but on a practical level, this area is where you make the most of your decisions. This can lead you to think that if you move, it needs to be nearby. Perhaps you think that you need to remain in your county, in the North or the South, or perhaps somewhere your family is situated. Of course, social and emotional roots are important when choosing a property. But it’s essential to think beyond your borders if you have the chance.

For example, why not consider a property abroad? I’m not suggesting this is totally practical for everyone, but if you can dream if you can do it, right? A landed house for sale in Puchong, or a beachfront home in Perth could grant you a wonderful new life should you have nothing tying you down, or perhaps the desire for something completely different. After all, if you’re just looking for fantastic value, how better to get more purchasing power than to head to a different country where your currency has more staying power? You might find something twice as good as you could have back home, well within your budget! Of course, this takes time to plan, as arranging a whole new life is not easy. But if you achieve this, you’d be surprised to learn just how effective it can be.