Property Buyers Guide

Property Buyers Guide



Property Buyers Guide
Property Buyers Guide
Buying property is​ a​ major investment decision that needs a​ lot of​ thought .​
To make sure you are making an​ informed decision, it​ is​ best to​ refer to​ a​ buyers guide .​
This will guide you on the various considerations you need to​ look at​ before going ahead (or not) on that property purchase .​
It also guides you on the various options that are available in​ making that purchase decision as​ easy as​ possible.
Acquiring property can be easy if​ you know how and if​ you follow the proper steps .​
Here are some of​ the most important steps in​ acquiring that piece of​ property you have been yearning for:
1 .​
Among the first steps to​ acquiring property is​ deciding what your property needs are .​
To aid you in​ making this decision, make a​ wish list covering preferred location, type of​ property (detached, bungalow), number of​ bedrooms, etc .​
Once you have done this, look for an​ estate agent .​
You can do this by looking at​ the telephone directory, calling and making an​ appointment to​ discuss your requirements .​
2.Alternatively, you can use the Internet to​ search for properties that meet your requirements, shortlist those that look interesting to​ you and contact the estate agent under whom the properties are listed for an​ appointment and arranging viewing of​ the property.

3 .​
At this point you will probably already know what the price of​ the property you are looking at​ is​ and it​ is​ time to​ determine what you can afford to​ pay at​ what rate .​
Rarely will you be able to​ afford to​ make full cash payment for the property, and even if​ you could and unless there is​ a​ big discount for cash payments, this option is​ not generally advisable, because of​ cost of​ money .​
What you will need to​ do is​ determine the initial payment you are willing and able to​ make and what periodic payments you can afford .​
a​ good rule of​ thumb for the periodic payments is​ that, in​ combination with your other repayment obligations should not exceed forty percent of​ your net monthly income .​
4 .​
Then you make your offer .​
You may have already organized your mortgage through a​ lender to​ finance the purchase but, if​ not, this is​ the time to​ go looking for the correct mortgage for you .​
There are a​ lot of​ companies offering mortgages but make sure you research these companies before making your choice (refer to​ the mortgage guide for more details) .​
Choose the best offer which will apply to​ your payment capacity.
5 .​
Typically, the lender will establish your ability to​ pay by referencing either previous months pay slips or, in​ the case of​ the self employed, previous year’s accounts .​
They will take into account assets and liabilities as​ well as​ determining ownership and value of​ the property to​ be mortgaged .​
Going through the legal process of​ a​ mortgage is​ facilitated by a​ conveyancer (solicitor) and the lender .​
Upon completion of​ the requirements, the legal documents will be prepared by the conveyancer and will need to​ be signed by both mortgager and mortgagee and duly notarized .​
This typically includes a​ promissory note, a​ mortgage agreement and disclosure statement.
6 .​
Once you have found your property, have a​ mortgage and have begu​n making your payments for a​ reasonable period of​ time, it​ is​ now appropriate for you to​ start thinking of​ ways to​ make your mortgage work for you .​
• One way is​ remortgaging, which is​ the process of​ paying off one mortgage with another one in​ order to​ free up capital or​ take advantage of​ lower mortgage rates at​ a​ certain point in​ time .​
• Another way is​ to​ make mortgage overpayments whenever possible to​ lower the total interest you pay since the mortgage rates will be applied on a​ lower amount .​
• Releasing equity (borrowing more money from your mortgage property on the basis of​ the increase in​ value of​ your real estate) is​ one way to​ generate cash even if​ your real estate is​ still under mortgage .​
• If you have more than one mortgage, with the value of​ one property sufficient to​ cover the remaining capital of​ many or​ all of​ the mortgages, you may want to​ consider debt consolidation, which is​ simply defined as​ the process of​ placing all your mortgage obligations from several real estate properties into fewer properties .​
Buying property is​ not an​ easy task after all .​
However, with a​ proper buyers guide, and an​ understanding of​ the concepts of​ managing mortgages, like remortgaging, mortgage overpayments, releasing equity and debt consolidation, the experience need not be painful; it​ could turn out to​ be profitable, too.




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