Being aware of and managing your budget is the most important thing to be aware of when it comes to buying a new property in Finchley or anywhere else. Buying a property is one of the biggest responsibilities anyone can take on, so whether you’re a first-time buyer or moving up the property ladder, every financial decision you make is critical. Here we explain how to stick to your budget when purchasing your dream home in Finchley.
What property price can you realistically afford?
When buying a new house, your expenses will have a big influence on what you can afford, especially when it comes to factoring in the mortgage payments. So, it’s important to know the maximum property price you can afford so you stay within your budget limits and don’t leave yourself ‘house poor’.
There are a few measurements you can use to help with your budgeting. Try to implement the following, if possible:
· Ensure that you do not spend more than 28% of your gross monthly income on mortgage payments.
· Avoid housing payments that exceed more than 32% of your gross monthly income.
· Try to limit debt payments to no more than 40% of your gross monthly income.
Use the above points as a guide, although they may not be practical for everyone. The bottom line is that after all your bills and outgoings have been accounted for, you should still have enough spare money to live on without having to struggle every month.
Adopt a flexible approach
When searching for a new property in Finchley you stand a better chance of achieving your dream purchase by having a flexible approach. Of course, there will be certain non-negotiables that can’t be changed, but when it comes to specific locations, be prepared to look at other options as your first choice could limit your opportunities.
Having a wider location net could help you get more for your money and there is always the option to make changes to the property after you move in – negotiating for a better price could help to pay for this too.
Create a plan
Planning is everything when it comes to budgeting for a home, and it should be the first thing you do. Take a close look at how much income you receive each month and what your outgoings are and then how you could afford to spend each month on a mortgage.
Consider extra costs
When it comes to purchasing a property in Finchley, there are a few potential costs you need to consider. Although you may be able to afford to purchase the property, can you afford the monthly cost? These include:
Commute
Your daily commute should be factored into your budget, especially if you are working in central London or another area that is not close to your new Finchley home. Travel costs can quickly stack up across the year, so check how much it will cost to travel to and from your workplace every day.
Bills
Another extra cost to consider will be your monthly bills. This relates to water, gas, electricity and local council tax charges. If the house is on a water meter this ensures you only pay for the water you use, rather than a fixed amount every month. Gas and electricity prices will be higher in a bigger house, so be sure to check the energy rating as a better insulated property can save you money.
Set up viewings for as many properties you like
If you see a house and think it a good fit, try to secure a viewing as soon as possible. The local property market is very competitive so you should keep your options open and set up and attend as many as possible. It is worth seeing properties that may not seem like an exact fit as you can see what you do and do not like close up and seeing it in person is usually completely different to looking at photographs.
Use a trustworthy estate agent
Finding the right estate agent to work with will also go a long way to helping you maximise your budget. An estate agent that has an established reputation in the area will be able to offer guidance on the types of properties that are available based on your requirements, while helping you to negotiate with the seller, if needed.
Squires Estate Agents specialise in properties in the Finchley, Hendon and Mill Hill area, and have helped countless buyers to get more value for their budget. Get in touch today to see what properties we have available and to see how we can help you find your ideal home.