Buying a new home can be an incredibly stressful experience. There are a wide range of processes that need to take place before a sale is agreed and these may involve negotiating with the seller to attempt to reduce the list price of the property and delays due to being involved in a property chain and waiting for other parties to buy or sell homes before your move can be completed. Sometimes a property chain can break completely, derailing the buying process of your next home. It is important to prepare yourself for the potential for problems or issues during the process of purchasing your next property. Some problems will be completely outside your control, your actions can influence whist other factors. This article describes two top tips for homeowners who are looking to move up the property ladder, sell their current home and successfully secure their next property.Â
Location
There is a wide range of reasons why many estate agents consider the location of a property to be one of its most important attributes. In fact, the location of a home can dramatically increase or reduce the asking price of any property. Important indicators for a prime location include being situated in a neighborhood that is pleasant and benefits from low rates of crime. This factor alone can make a huge difference to the quality of life that residents in the local area experience. In addition, the home’s proximity to nearby shops and amenities will significantly impact its desirability. Many people like to be able to shop for essential products and services without needing to undertake a long car journey, and a location that is well-served by local amenities is often sought after. In short, decide what you want from a location and what services and amenities are a priority to have nearby. Visit the neighborhood during the evening to get an idea of how safe and secure it feels.
Choose the Right Mortgage
One of the benefits of moving up the property ladder rather than being a first-time buyer is that you will have amassed some equity in your current home. You may not have paid off your current mortgage but will have likely paid off a considerable proportion of it before looking to move up the property ladder. In addition, you may have benefited from the value of your property rising during your time in your current home. When looking at your next home, it is important to choose the mortgage that is right for you. Choosing an adjustable rate mortgage may allow you to benefit from lower interest rates at the beginning of your new mortgage. However, be aware that variable-rate mortgages adjust with the market, so your monthly repayments can increase if interest rates change. If you seek the predictability of monthly mortgage repayments that will stay the same over time, then a fixed-rate mortgage may be more suitable and can help you to budget more effectively.
In Conclusion
When looking to move up the property ladder, the location of your next property needs to have suitable amenities for you and should be in a neighborhood that is largely crime-free and pleasant to live in. Consider the type of mortgage for your next home based on your personal financial circumstances and whether you seek a predictable monthly repayment amount or one that follows the market.
