When it comes to significant purchases, your house is likely to be the most important and biggest buy you make during your lifetime. So, managing your money through every step of the process is a key principle to remember. Here are some sage pieces of advice to help you understand where you should be at and what you should be doing!
When you intend to buy a property, the largest financial action you’re going to have to take is saving a deposit to place down on your chosen property. There is no standard amount that you need to save before you have a deposit. The expected amount will vary on the overall price of the property you’re looking at. The more expensive the property, the larger the deposit will usually have to be. Generally speaking, you should aim to save up 20% of the overall property price. Nowadays, with increasing numbers of people finding difficulties in getting on the first rung of the property ladder, the presence of 90%, 95%, and even 100% mortgages on the market are on the rise. This means that you’d require no deposit, or only have to gather up a 5% or 10% deposit. However, it’s always good to bear in mind that the larger the deposit you put down, the smaller your subsequent repayments will have to be. Once you know how much you need to save for your ideal home, you can begin to feel a little fazed or daunted by the large figure. However, it’s completely feasible. You just need to be sensible with your money and save effectively.
When you are in the process of buying your property, you will inevitably have a whole lot of money tied up in the place. Sure, you should leave this here if everything is going swimmingly. But there are certain circumstances where you might want to access some of this money. The good news is that whatever you need funds for, you can engage with equity release. Equity release involves accessing the money that you have previously paid into your property. If this sounds good to you, make sure to use a reliable company like responsibleequityrelease.co.uk. They will make sure that you are fully informed and get the best experience possible throughout the entire process.
If you decide to sell your house, you’re going to want to get as much money from the transaction as possible. Now, most people will opt to sell their current property through an estate agent. This makes sense – selling your home through an estate agent has many benefits. However, this comes at a price. Estate agents will usually charge a certain fee which will be a percentage of the final sale price. Bearing in mind the price of a house, a large percentage could rack up thousands in fees. However, nowadays, there are online agents who don’t charge any commission on house sales. Consider using their services. They can prove equally effective, but a whole lot cheaper.
These are just a few different ways to manage the money that you invest in your property at some point! So, keep them in mind throughout your journey up the property ladder.