When Is The Right Time To Buy A Home?

Buying a home is a huge step in your life and it will likely count as the biggest investment you ever make. As such, the decision of whether to buy your first home is one which you need to consider carefully, and today we want to help you think about when the right time is for you. Whether it is your first time buying a home or not, considering the timing and the timeline of buying a house in UK is crucial and you need to ensure you make the decision carefully for your own sake as well as your family’s. 

Learn to determine when it is the best time for you to buy a home. Several factors can influence whether it may be the right time for you to buy a home. You need to make sure you consider the complete picture before deciding.

Your Needs

The first thing you should think about before jumping into a home purchase is whether or not you need to. In your life, consider where you are both financially and emotionally and think about whether or not a huge commitment such as a mortgage is right for you. There is no clear-cut answer here bit it is important for you to sit back and think before you jump into such a big investment. 

Your Lifestyle 

Lifestyle is a huge factor in the purchase of a home and it can be a huge issue if you don’t want to be held down by a home at this point in your life. If you are younger and you want the ability to be free and travel as you see fit, it may be better for you to rent a flat or a home and this will not tie you into a long mortgage and will afford you the freedom you need. Always consider the type of life you want to lead and whether a home fits into this yet for you. 

Affordability 

Money is by far the biggest issue you will face when looking to make a home purchase. Buying a home is about more than saving up for a deposit and paying your mortgage each month. During the buying process, there are also extra costs such as stamp duty, tax, and solicitor fees you have to pay even before you have the keys to your new home. As well as this, you will have to look at home insurance, bills, and broadband costs when you move in. Before you jump in and buy a home it is important to look at your bank and ensure that you are able to afford all of these monthly costs as well as have a comfortable life. If not, it is not worth risking financial instability and you need to be careful about what you do. 

Career Path 

Your career is a big thing to consider when you are looking at a mortgage. A mortgage is a big commitment and your career will impact the money you are able to make each day as well as the type of lifestyle you lead. Some jobs require you to travel and as such, you should consider whether or not renting an apartment might fit your needs a little better than a mortgage on a house. 

Your Personal Situation Owning your home requires a lot of commitment when considering managing a mortgage, on going maintenance, insurance, taxes and utility bills. Before you are ready to take these financial responsibilities you need to ensure you are ready to buy. Purchasing a home is a long-term decision that can make the homeowner less flexible in future, for example moving locations for a new job becomes more complicated when you own a home. So, before you commit to any financial decisions, be sure to determine that the location or neighborhood you choose to search around is where you are most comfortable living in.

Your Health and Wellbeing 

Health is also a big consideration to make when buying a home, particularly if you are older and are in need of care such as primecarers. If you have health issues that require live-in care or outside assistance, this may influence the type of property you buy as well as where you buy your home. Ensure you are close to amenities you need and this will help you to stay safe and supported. 

Interest Rates Ideally, you want to take advantage of lower interest rates to reduce monthly payments and the total amount paid over the lifetime of your mortgage. The interest you pay is dependant on the current market, the lender you choose and the type of mortgage product you get, and many other factors. Generally speaking, mortgage lenders will offer lower interest rates to borrowers with a stronger credit score. One thing to also do your research on is whether you want a fixed-rate mortgage or a tracking rate. A fixed-rate will keep your mortgage payment and interest stable for a number of years - usually 2,3 or 5. A tracker will allow the interest rate to change in real-time as it ebbs and flows on the market. The risk with a tracker mortgage can be a sharp increase in interest, however, if interest drops significantly you could save a lot of money. Make sure to do your research and see what you can get. 

Help To Buy and Shared Ownership

If you are a little short of budget and you are looking for an opportunity to get on the property ladder quickly this year, it is a good idea for you to consider homes that offer help to buy and shared ownership schemes. Help To Buy allows you to save money for your deposit more easily and get help from the government with your purchase, and shared ownership allows you to buy a portion of your home and therefore share the burden of bills with an agency or another private seller. 

The Property Market Many regard ‘A buyer’s market’ as the right time to buy a home as there are more homes for sale than buyers looking to purchase them – giving the purchaser more bargaining power. Sellers in these markets tend to offer more competitive pricing, meaning that you are more likely to get more home for your money plus, more homes to pick from.

Up Front Payments And Final Costs Homebuyers are expected to make a down payment also known as ‘deposit’ for the home. Typically, a larger down payment will result in lower monthly payments. In order to qualify for a mortgage, you will need to save at least 5% – 20% of the cost of the home you would like. If your deposit is lower than 20% then your mortgage provider may require you to pay insurance or fees.

Location 

As with all of the considerations above, location will have a huge impact on whether it is the right time to buy a home. Not only are the prices widely different in different parts of the country and the world, but lifestyle is incredibly different as well as job opportunities. Knowing when the right time to buy is in your location may depend on a number of things like transport, schools, house prices, and more. Crime rate is also a thing you need to consider for your own safety and security.

Amenities

From shops to hospitals to schools - you need to think long and hard about what you need out of your new neighborhood and whether you can find the right property at the right time. Location and the amenities you have available to you will impact your ability to move and it may cause you to reconsider where you want to live or whether you want buy at all instead of renting. 

The Time Of Year According to market trends, more homes tend to go on sale during the summer and spring months – when the weather is better and children are not in school. Looking for a home during these months will give you a broader choice of homes to pick from. If you have been holding out for the perfect detached family home, for example, you may have better looking during this time as the honey pot is usually more full at this time of the year. 

It is almost impossible to pinpoint the ‘perfect time to buy a home or to apply for a loan as it is dependant on the market situation as well as your personal situation. In most circumstances, people don’t have the option to put their life on hold whilst looking for the perfect time to buy. If you consider the long-term benefits of buying a home and the longevity of the period that you are likely to live in the home then the positives will almost always outweigh the negatives. If you do, however, get a comprehensive financial plan that takes your individuals needs and goals into account then you’ll be able to reach this major personal decision at a right time for you. Find out if it is the right time for you to buy a home this year.