Buying a home is often the biggest single purchase any average human being will make, so it’s important that you get it done right first time. Many people buy a property as an investment, and this can work out well, but as we’ve seen from the recent (and still fresh in our minds) market crash, it’s not always wise.

When buying, there are a number of things you should keep in mind, if you want to make sure everything is done correctly.

Here are our tips for doing just that.

A Place to Live

Home-4

Home-4 (Photo credit: wonderfully complex)

First of all, a new home should always be a place to live. What we mean by this is simple: choose a home in which you can imagine being happy for a number of years, instead of one that will cause untold levels of stress through high mortgage payments and the like.

There will be plenty of options, so don’t simply plump for the first one you see. If you find one that you really like, try and see if the seller would be willing to drop the price a little bit – it’s worth a shot!

Asset, Not Investment

To reiterate what we said in the opening paragraph, it is unwise to assume your property will only increase in value over the years. Treat your home like the asset it is, and you will be less likely to take irrational risks.

By not treating your property like an investment, you may be in for a pleasant surprise down the road if it does increase in value, but you’re still well prepared in case it doesn’t.

Remember the Bills!

Home expenses can absolutely destroy your wallet, but they’re often not taken into consideration when initially purchasing a property. It all adds up – mortgage payments, solicitor’s fees, general upkeep, home insurance, taxes, as well as things like water, central heating, electricity and internet bills.

The larger the house, the greater the upkeep – utilities and insurance will both increase as the property size does. Make sure you don’t forget these extra outlays; try not to buy a home at the very upper limit of your budget.

A Home Can Decrease in Value

Do not forget this point. Although it may seem obvious, what with the recent bubble burst and all, many people still buy properties under the assumption that they will turn a profit. And though many properties will indeed increase in value, a significant number of them will not, and some of these will instead lose value.

You don’t need to look far for proof of this – just the other day, it was reported that a home in Buckinghamshire went from a value of £275,000 to £0, in just a few months. This was due to the proposed HS2 route; something like this could happen to you.

You also don’t even need to buy, not necessarily. In Europe, most people are still renting housing – make sure you consider this, as buying a property is not essential, and can often be very costly in comparison.

As long as you keep these tips in mind, buying (and owning) a new property should come easily to you. Just remember to not go too close to your budget and you should be fine.