A home is one of the most costly life choices, especially if you want to purchase it with a mortgage repayment plan. But, on the other hand, buying a home with a one-time payment could clear out a chunk of cash from the savings account.
Moreover, first-time home buyers require to pay a percentage of the deposit. Therefore, you should have sufficient savings for making the deposit, recurring repayments, and monthly household costs.
Besides this, homebuyers must consider factors like additional costs, location, transport, school, first impression, budget, finding a solicitor, etc. Additionally, homebuyers have the choice of hiring an agent to see different options or find houses through classified ads.
It would help if you started doing background research for available home schemes in Ireland. Also, register with an agent to receive notifications regarding viewing during the launch date and developments.
Moreover, you must have records of finances to avail mortgage on the home and sign a contract. Until December 2019, homeowners were required to deposit ten per cent (i.e., almost €20,000) or five per cent towards contribution. These guidelines were under the Help to Buy Scheme.
Furthermore, home buyers were required to take an application number from the official website. Optionally, they were offered the Rebuilding Ireland Loan scheme. Additionally, homebuyers require to sell their existing property if they are planning to trade up.
Therefore, homebuyers would require a selling agent. Under the best scenarios, it takes no less than ten weeks to sign off a contract. Moreover, developers might not sell a property to a home buyer with an existing home. Therefore, the latter would require waiting for the completion of phase two.
Purchasing a home in Ireland is a costly affair. It comprises various additional costs. For example, home buyers would require to pay two to five per cent of the purchase price as a booking deposit. The buyers make this payment after reviewing and accepting the offer.
Moreover, the amount is only refundable until the buyer signs the contract. Similarly, buyers would have to cover a one per cent stamp duty on houses costing up to €1 million and two per cent for properties that cross this range.
Likewise, an average bank valuation costs €150. Additionally, the surveyor report charges cost €500. Besides this, the solicitor would also charge a percentage or flat fee on the house. Furthermore, buyers would have to factor annual service charge and multiply the amount with the mortgage tenure.
These high costs can create a burden on covering household expenses. However, looking for quick loans in Ireland and other viable options can prove useful to reduce it.
Families looking to move to a new home must discover the location during different times of the day. It is crucial to find the distance of the nearest market to the home, sports grounds, GAA clubs, etc.
Moreover, home buyers must explore the nearest and most popular markets close to the home. Use location apps to verify the distance and don’t take an agents word of mouth for the same. Buyers seeking houses in the Greater Dublin Area must not forget to mark proximities to road, amenities, rail, and bus commuter options.
Additionally, buyers must conduct a trial run to gain a real-life experience of conditions during rush hour. They must also find the lowest cost of a commuter. Parents with kids might want to explore schools.
Buyers must find whether the school there is any school in the development’s catchment area. Aside from this, buyers must check for signs of first impressions. Factors like space, exterior outlook, interior furnishings, etc., would account as a few of them.
Before signing a contract, it is essential to check the maximum amount a lender is willing to provide. Numerous mortgage money tools can help to estimate the value. Besides this, you can even view the details on a loan comparison website.
Make sure to notice the variable or fixed rate of interest with the mortgage. First-time buyers might even find rewards like cashback appealing but must not forget the three most relevant factors.
These include overall mortgage cost, interest rate, and the total number of years. The ideal choice would consist of mortgage approval to understand the same price ranges. This practice also makes the seller understand that you are serious about buying the property.
Additionally, develop a mortgage checklist and include APR, maximum loan available, tax relief, lender switching costs, early repayment charges, etc. Other factors would include the availability of debt consolidation, LTV, standard variable, discounted variable, monthly repayment, etc.
Besides the costs mentioned above, you might incur legal fees of €2,500 – €5,000, moving costs, repairs, furniture, and decorations. Additionally, you might incur costs of electricity and heating, home insurance, maintenance, TV, broadband, property tax, Bin charges, TV license, and management fees.
Make sure to incorporate these costs in the budget planner. It will help set a long-term repayment plan, avoid defaults, and improve credit rating. Additionally, make sure to set aside a sum in the savings account and school or college fees of kids.
Also, keep a separate account of costs incurred by caretakers and babysitters. Finally, make sure to create emergency funds for unforeseen events. These could include vehicle repairs, a leak in the house, medical expenses, etc.
A good habit of money management would include separating upcoming events like birthdays, parties, and other gatherings. It would help if you even availed loans from private money lenders in Ireland to recover from existing debt. Also, incorporate the revised repayment in the budget.
Besides this, ask for lower repayment plans or interest rates from existing lenders. They might provide many solutions.