Buying your first property can be a really exciting experience but one which can easily overwhelm you.
This article will help you understand some of the things you need to know before buying your first property in the UK;
When doing your research will start by looking at the form of property you want to buy.
What do you want of movable or immovable property? You also have the choice of purchasing an intangible property like digital assets.
You will then move to research on what is required of you to be an owner of such property.
For instance, if you want to purchase digital assets like an online marketplace, you will be subject to UK digital services tax
To purchase a movable property like a warehouse or office space they are some tax compliance regulations also have to pay.
The next thing on your research list should be finding potential sellers or property brokers.
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Your research should also cover much about the expectation of your property and the market prices for the same.
2. Licenses, leases, and freehold property.
All these three give you proprietary rights over a particular property.
What sets them apart is the duration. Getting a license of a property will often be associated with a shorter period.
A lease will give you ownership rights of a property for many years but the duration is normally set.
Freehold property on the other hand would mean the owner gets full proprietary rights.
Before setting out to buy your first property you must consider these three options. Your agreements contract should clearly define the terms of sale.
Check all the requirements including the business rates on the type of property you want to purchase.
3. Location and size
The location of a property is very important and even before eying out some properties, you must have location preferences.
When choosing the location of your property what matters is what you intend to do with the property.
If you’re buying a property for the sole purpose of running a business you may want to purchase a property that is close to your target market or the city.
If you’re buying a residential property the best location is a place with social amenities and good security.
Once you have narrowed down the locations that best suits you you can now decide on the size of property you want.
Size most definitely influences the price as the bigger the size the higher the price is going to be.
Location may also in some cases influence the price as properties in secure locations to tend to sell at a very high price.
4. Get your finances in order
Money is always a limiting factor to the type of property you Will get.
What will normally determine the amount of mortgage you can get is any outstanding debt or rather the debt to income ratio.
If you are high on debt you are most likely to be limited on the amount of mortgage you seek.
Get your credit score as high as possible to get the best mortgage with lower interest.
You may want to save up some money for a mortgage deposit before applying for mortgages.
When buying property for investment or business purposes it is also crucial to save some money to use as capital for your business rather than investing everything in purchasing a property.
5. Renting versus purchasing property
Another thing you must know before buying the first property is the option of renting instead of purchasing.
While it is a very great investment option to purchase a property instead of renting it, you must consider the upfront cost of buying a property.
Rentingoffers more flexibility in terms of moving in and settling down whether it is your business or residential premises.
Renting may also leave you with enough capital to invest in other properties.
Another very possible option is to start by renting the property and once you’re comfortable with it you can then go on and purchase.
This will give you enough room to decide whether to buy or to rent.
6. Legal requirements
The buying and selling of property are protected by law and as a person interested in purchasing a property you must do it legally.
It is often very expensive and time-consuming to settle legal matters concerning property.
Consider getting a solicitor to help you with the legal work.
You may need to factor in the cost of the property or land registration, stamp duty tax, valuation cost, value-added tax, and any other fee that may arise depending on the specific property you’re purchasing.