From Renting to Owning a House: What Should You Consider?

If you are thinking of taking your first step onto the property ladder having previously rented, it can feel like a daunting task to undertake, especially given the current climate.

There are several things you need to consider to make sure you have done as much preparation as possible ahead of moving house. Below are just some of the key things for you to bear in mind when buying a house:

Assess your finances

Although it can be expensive to rent a house, there are a huge number of financial factors that come into play when you finally decide to step onto the property ladder.

To make sure that you know where you stand when you buy a new home, one of the best places to start is checking your credit score. This is a surefire way of getting a sense of how you would look to potential mortgage providers. If you are looking to improve your credit score, you could always opt to get a credit card and carefully manage how you use it.

Once you feel like you are in a position to commit to taking the next step, it would also be beneficial to come up with some sort of budgeting plan so you can assess how much you are currently spending and try to find small sacrifices you could make to help you save money for your new home. Think cutting down on subscription fees, going to social events and splurging on material things that won’t help you reach your long term goals.

Start saving for a deposit

One of the most important things you need to carefully plan for is saving up for the deposit for the house. It can be difficult to save when you are renting as rental prices can be high and often increase throughout a tenancy, but there are ways you can slowly put money aside to make sure that when the time comes you have a solid nest egg that will help you step onto the property ladder.

There are a wealth of savings accounts you can choose from, and it could be a good idea to have money set to automatically leave your current account and go straight into your savings so you can have peace of mind that the money is slowly building without you having to consciously put it away each month.

Patience is also key here, as it can take a while to save up the amount of money you need depending on the price of the home you are looking to purchase. And, bear in mind that everyone’s saving journey will be different, so it’s important not to compare yourself to others also saving for a deposit.

Price of the property and purchasing fees

Finally, the price of the property you are hoping to buy is of the utmost importance. It’s crucial that you go into your property search with a clear budget in mind. This will help you narrow your search and also help you avoid any disappointment if you find the perfect home online that is beyond your reach.

Put time and energy into your research and set realistic goals as you scour the market, and soon enough you will find the perfect place you have been looking for!