When you decide you want to buy your first home, you need to figure out if you can afford it. There are a lot of costs that you might not have considered. Here are some things you need to know about affording your first home.
You will have to pay monthly repayments
Once you have found a home you want to buy, you will have to sort out a mortgage with a provider. A lot of first time buyers go to their bank to sort out their mortgage. Depending on how much of a deposit you put down can affect the amount you have to pay back monthly for your mortgage. You should make sure you can afford to pay out monthly before you agree to take out a mortgage. Otherwise, the home could end up being taken off you.
You will have to pay for home and contents insurance
Another cost you should consider is contents and home insurance as you need to protect your home. Therefore, you should look for a provider as soon as you move in. If you live in a flat, it’s harder for the burglar to get into the building as they often need a code to get in so you can feel safer. Home and contents insurance also protects you if damage occurs to your property.
You will have to pay for bills
You need to consider that as well as the monthly repayment charge for your mortgage, you will need to pay out for bills every month. An apartment is excellent if you’re strapped for cash, as the bills are often cheaper than when you are living in a house. Apartments are easier to heat as they are often high up, and as heat rises, your apartment will feel warm. It will mean you are switching on your heating less which will result in you paying less for your energy bill. Remember to call and set up your bill accounts when you move in.
You won’t be able to afford to do a lot of social activities
When you buy your own home, you have to pay out for decorating and bills so you will have less money for social activities. Therefore, you may choose to live in an apartment as it’s more social than living in a house. You may get use of a gym included. You should explain to your friends that you can’t go out as much, and persuade them to come over to yours instead to hang out. It will help ensure you have enough money to pay out for everything.
You will need to make improvements
When you move into a new home, you will want to make improvements so that it keeps its value over time. It could be a good idea to get an apartment as less needs to be done to the property. The more improvements you make, the more you will be able to pay back of your mortgage when you sell.
You should think carefully before buying your first property as it can be an expensive time!