Home Ownership

Things to Consider When You Buy Your First Home

Buying your first home is an exciting experience and it is one that you’ll remember for the rest of your life. Although memorable and, in some ways magical, moving home can also be an incredibly stressful time, and it is one that, if not planned correctly can take a strain on your health. One of life’s biggest decisions, the decision to move home should never be taken lightly. Here are three things you have to consider:

Creating an Extensive Pros and Cons List

Every single angle must be covered when you’re looking to move home. Most people make a pros and cons list about the house itself, but very few actually pause to make one about the financial ramifications of buying the house itself. Yes, it is undoubtedly important that you make one about the place you intend to live, but it is also important that you make one about the debt you accumulate, because you may have that debt for as long as you have the house.

Consider the Impact of Any Existing Debt

From student loans to credit cards, we all seem to have debt these days, with collective debt in Britain worth £1,430,000,000,000 (£1.43 trillion). If you have a large amount of debt then the decision to take on a mortgage as well should be carefully considered.  To simplify your outgoings, you could choose to consolidate your loans to one monthly payment.* Of course, this doesn’t solve the problem entirely and may increase the amount you repay overall, but depending on your level of debt, it could help you bring everything under control.

Consult Parents and a Financial Advisor

All financial decisions should be carefully thought out.  When making a decision of this magnitude, it can be helpful to consult with parents and a financial advisor.  Parents are always a good starting point, and they know everything about you as a person and whether a home is right for you. When it comes to financial intricacies, however, they may not be right and, if so, don’t hesitate to consult a financial planning expert, as these people can help you decide what’s affordable for you and what isn’t, helping to prevent you from struggling further down the line.

Moving house is an exciting process, but it can also be incredibly stressful. You have to consider every single stage of the process in turn before deciding to move and, if you fail to do so, your exciting experience could turn out to be a little stressful. The three things mentioned above are essential and, if you do this, you’ll be heading in the right direction.

*Consolidating your debt may increase the amount you pay back overall and extend the repayment period of your debts.

Comments (1)

  • Good advice. Many if not all of these points are probably applicable even if it’s not your first home.

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