Tips for buying a home during the cost-of-living crisis
Ah, the cost-of-living crisis. It won’t go away, dominating our news broadcasts and, in fact, everyday life. Who hasn’t looked wide-eyed at their heating bill recently?
The cost-of-living situation means it’s sensible to be cautious when buying a home. However, it’s still perfectly possible and reasonable. The market isn’t shutting down (although the house price growth has slowed considerably).
On this page, we’ve put together some essential tips for buying a home at this time. Ultimately, you should consult solicitors or financial advisers for personalised advice. Here are our thoughts.
Don’t stretch too far!
The Office for National Statistics says we’re currently in a recession that’s predicted to last another year or so yet. There’s no escaping that cold, hard reality.
The way out of a recession is for people to spend, which gets the economy going again. But you shouldn’t use that illogical reasoning to jump into a mortgage at the very top end of your stretched budget.
If you can’t afford it yet, be patient. The time will come, eventually. Keep up with your savings, and it’ll be an exciting time as soon as you have the money.
Think about what you can control (not what you can’t)
What do we mean by that? Well, for example, you can’t control the average house prices. You can’t control the mortgage rates, and you can’t control the average cost of living.
So, what can you control? You can do whatever you want with your income. You could cut costs (getting rid of those streaming services could save some up to £100 per month) or get a second job for some extra income. Promotions or wage increases might be available – you never know.
You could also control the area you’re looking to move to, taking into account a home’s value and its expected value in the future.
Get advice and budget
Always seek the advice of a mortgage adviser. Mortgage rates have risen sharply over the past few months however they are stabilising. They are still low when you compare them to the 1970s and 1980s. There are lots of different mortgage products and getting advice from a mortgage adviser could save you thousands of pounds over the term of you mortgage.
At the same time, have as good an idea as possible of the cost of your new home. That’s not just the upfront fee. It’s also the running (heating, water, electricity, etc.), maintenance (cleaning, gardening, servicing, etc.), and repair costs.
You don’t want any nasty surprises. This is where a home survey can help, giving you a financial estimate of repair costs and an overall home valuation.
Use a sustainable savings source
If you already have a home, you can use the income from the sale as a deposit or even buy a home in cash. Yes, its value may have stopped climbing for now, but so has the value of the property you’re looking at.
Help-to-Buy is gone, but there are other options for first-time buyers. Consider a LISA or dipping into the First Homes scheme.
Don’t panic
Here’s perhaps the most important advice of all. Don’t panic.
The cost-of-living crisis will pass. If you need help to make ends meet and get food on the table, there might be better times to worry about a new home.
On the other hand, if a new house would help reduce your costs, it could be a great idea.
Scary situations, like the current one, can make us act illogically. Try to keep a cool head and really think through your options. It’s usually valuable to have trusted friends and family members (or even solicitors and financial advisers) to talk these things through with.
What GB Home Surveys can do for you
GB Home Surveys is a team of chartered surveyors spread throughout the South West, West Midlands, and South Wales. Whether you’re in Birmingham or Devon, Cardiff or Chipping Norton, our friendly staff can be there. A chartered surveyor is a member of the governing body RICS. They must undergo years of intensive training and qualifications before completing professional competency assignments and tests. They’re also bound by a strict code of ethics and morals.
Basically, that means you can trust us to get the job done – and to get it done well. If you’re considering buying a home during the cost-of-living crisis, brilliant. It’s crucial to understand all the costs involved, and that’s where one of our RICS home surveys can help. Get a free quote for a Valuation, Level 2, or Level 3 home survey by following the links on this page.
For any further questions or a commitment-free chat, why not get in touch using the form below? We’ll look forward to hearing from you.
