If you are thinking of buying a bigger house or intending to rent then you have definitely done a lot of calculations. However, there is an expense that is very difficult to predict. That is, how much will you pay each year for maintenance and repairs? A close look at these potential costs could discourage you from buying or could make renting more attractive. There is certainly no way to predict these costs but research shows that it is about 0.5% -1% of the value of the property – every year.
What does this mean? It’s just that the bigger a house is, the more it costs to maintain it. In fact, if the house has investment objectives, i.e. it is rented for income, then this amount may be higher since the departure of a tenant can mean significantly higher amounts for repairs. At the same time, you should take into account the tax implications of these expenses depending on whether you are an individual or a company. However, a new house often means a new found happiness too.
So is renovating really the answer?
If you have a new home, that is older and needs work as we do, then you may consider a renovation. However, if you want a brand new build you may consider Bellriver Homes instead. Here are some tips though that will assist you in making the best and most educated decision when it comes to buying your first home:
- Do not let emotions influence your decision-making. Patience is a virtue. Don’t make a big decision like buying a home because you are stressed or excited. Most likely you are tired of the months-long search and want to finish. But check the prices. Learn as much as you can about the area. Do a thorough inspection of the house and then decide.
- Do not trust what you see. The first image often deceives. And do you know why? Because a painted wall can hide the damp behind it or there could be issues with subsidence or electric problems so be sure to have it properly surveyed. We got lucky that the homeowner told us of the issue before we purchased the house but the survey also picked it up.
- Get to know the neighbourhood. This means walking and often talking too! In the evening, on the weekends but also on a rainy day. People who live there know the neighbourhood better than you. They will tell you all information about the area you might not be aware of. It is even better to make the way to work one morning and follow the same path that will be done at noon when your child returns from school. You may discover things you didn’t know about the area, such as noise, pollution or crime.
- Do not buy based on price. Buyers tend to focus only on money. If cost is your top priority, factor in maintenance and repair costs as well. You don’t want to buy a house at the top of your budget to find out you can’t afford the running or repair costs of it.
5. Research the local market. The more information you have, the more informed you will be. You should know about the development of the area, crime and the quality of the school system, etc. What type of area will this likely turn into in the coming years?