Help for First Time Buyers
- What a First Time Buyer needs to know
- Points to consider
- How much can I borrow?
- First Time Buyer Mortgages
- Real Estate Transfer Tax
- Protecting your investment
- Choosing expert help
- Buying with friends or family
- Stages of purchase
- Shared equity
Stages of purchase
Under normal circumstances a first oversea property purchase should be considered as a relatively long-term project. Proper planning and research can make all the difference in being able to attain a successful outcome.
Before you start looking for a property, try to save a decent sized deposit. If you are able to put down a deposit of 10 percent (or more) of the purchase price, you will find that the range of mortgage options available to you is much greater (and interest rates lower) than if you need to borrow all of the money.
Calculating how much you can afford
Estimate what your monthly outgoings will be after you have purchased your new property. The difference between your net income and your monthly outgoings is what you can afford as your monthly mortgage payment.
Remember, too, that you will have one-off expenses (for example, legal fees, transfer tax, cost of furnishings, etc.) to pay, before you can move into your new home.
Choosing a Property
Once you have worked out how much you can afford, decide what sort of property you are looking for and which features are essential or desirable:
- house, bungalow, flat or studio;
- off plan, new build or second hand;
- sea view and/or mountain view;
- number of bedrooms;
- pool (privat or common);
- garage or parking space;
- convenient for bus stop;
- convenient for local shops, pubs, restaurants;
Making an Offer
In case you are going for a resale property and after you have calculated exactly what you can afford and are satisfied with your mortgage options, you are in a position to make an offer for your chosen property. Clarify the position regarding which fixtures and fittings are included in the sale and decide whether you need a full survey in addition to the mortgage lender's valuation survey.
Exchange and Completion
After your offer has been accepted, your mortgage application has been approved and your solicitor has carried out all the necessary searches and other legal work, you are then in a position to exchange contracts with the vendor. Before the exchange of contracts, you pay a deposit (usually 10% of the purchase price). At this stage, you are committed to purchase the property and will suffer financial penalties if you withdraw.
A day before signing the final contract, the real estate transfer tax has to be paid to the tax authorities and at the date of exchanging of contracts, the vendor is getting the agreed selling price, your solicitor, the notary and the broker has to be paid as well as the fee for the registration. Your solicitor ensures that all documentation regarding the transfer, for the Land Registry, has been completed.
Once the property is registered in your name, you need to arrange insurance cover, contact utility companies and make arrangements for moving furniture, etc.