Property is a popular investment for both UK and foreign investors. With prices constantly on the rise, it’s important to know what to look for when buying a property in order to make the most of your investment. Whether you’re a first-time buyer or an experienced investor, you must know a thing or two about how UK property buyers work their way around the industry.
Situation of the UK property market today
With fewer properties coming onto market, urban renters are looking to buy outside their city or town so they can get better value for money while still being close enough if something does go wrong with your new purchase.
Despite the lockdown restrictions starting to ease during the recent months, demand continues to outweigh the supply of housing. This means property buyers need to be on top of the game or risk missing out on what could be a great purchase opportunity.
Some tips you can use when buying UK property are:
- Unless you’re desperate, don’t fall for the Help to Buy scheme.
Help to Buy is a government scheme that sounds fantastic on paper, but in reality, it’s not so great. First off you have less equity and secondly the mortgage products are more expensive because of this program which means someone could pay interest rates per month higher than what they would otherwise be paying for their home/mortgage amount combo depending where they live in the UK.
It is always safer to prepare a sufficient amount of funds when planning to purchase a property. You are more capable of buying a home since you have cash up front.
While the Help to Buy scheme is offered to UK citizens only, there are similar mortgage packages that are geared towards foreigners looking at property in London, Birmingham, or Manchester. If you are non-UK resident and have come across these offers, it’s best to decline them as well. These might be scams that rip unsuspecting buyers off their money.
- Find a reputable solicitor.
Being a conveyance solicitor is not as glamorous or challenging, but it’s guaranteed income. The result? There are plenty of crappy lawyers out there who do nothing more than follow template-based practices and will always have business because they’re just painting by numbers.
With such an important decision to make, it is vital that you secure the services of a good lawyer. You can find one through trusted friends or colleagues. However, do not hesitate in seeking out professional help if needed. The price range for solicitors will vary depending on where they work but currently stand at about £950-£1 250 per hour (with between 1 and 3 hours typically required).
- Prepare all the required documents before signing anything.
When it comes to buying a house, the process can be frustrating. One of those steps is dealing with documentation and delays in obtaining documents from various sources which may cause headaches for both parties involved; this especially applies if you’ve already spoken to an agent or secured your mortgage and are just waiting for your solicitor’s go signal to settle the deal.
Make sure that any correspondence throughout has all relevant paperwork attached so there are no surprises later down road when things come up during your property purchase.