Buying a home is a big step and it’s vital that you choose the right location. Often buyers are restricted to an area that is affordable rather than convenient, but it is important to ensure that the property will be a good investment for the future and area plays a large role in this.
First time home buyers
When you are young you are able to commute and the distance between work and family is not as important as when you are older and less mobile. First time homebuyers often have more freedom of choice when it comes to deciding where to live and beyond looking for a sound investment and a property that suits their needs there is not much else to consider. If you need assistance in figuring out where you can afford to live on your current budget you can use the useful online calculator from the BBC to determine where you can afford to rent or buy.
Renting has become increasingly expensive and first time home buyers may have to make certain sacrifices or adapt their lifestyle in order to afford a property purchase. When financing a property it’s important to decide whether this is somewhere you plan to live long term – or if you might be renting it out to others in the future. Either way, location is one of the key deciding factors. Many financial institutions also consider area when offering a loan and the amount you are eligible for and the deposit required may differ depending on where your chosen property is located.
Research all your options
Deciding that a specific area suits you is one thing, but having some insight into future developments of a suburb may save you on repayments, insurance and more in the long run. If you are on the edge of an urban sprawl and there are proposed developments that might crop up in the future, try and obtain as many details as possible as urban spread can cause prices to increase or decrease, depending on the element attracted.
If you want to save money on your home insurance the area you are looking at will also play a role and a high risk area will push up your premiums. Be prepared to add some savings to your home financing or ask for a higher amount to add required security features that may help to lower costs such as home owner insurance.
For first time and seasoned home buyers it is essential that research is done when moving to a new area. If possible speak to people who live in the same street and gauge their reactions to certain questions, or join an online social forum that discusses matters affecting the area.
Even if a specific area is not necessarily your first choice but you are restricted to it by budget, ensure that the area has advantages outweighing any potential negatives. You may have to compromise on your idea of the perfect home in an ideal location, but if you undertake thorough research, the new property could still become the house of your dreams.
Image credits: http://www.ageuk.org.uk/products/insurance/home-insurance/