Whether you’re a first-time buyer, moving house or planning to invest in property as a source of income, understanding risks and making informed decisions is vital.
Here, we explore how to avoid common (and potentially costly) pitfalls so you can protect your investment.
Conduct thorough market research
A thorough understanding of the local property market will help you quickly identify good opportunities that suit you and your goals.
It will ensure you invest in properties that can give you a strong return on investment and avoid homes that could be potential money pits.
Take some time to get to know local property values, rental yields and any regional development such as proposed infrastructure or regeneration schemes.
Understand your financial commitments
When purchasing any property, it’s essential to calculate all the costs involved. The Homeowners Alliance details some of the costs to expect beyond the initial price tag, including:
- Stamp duty
- Deposit
- Legal fees
- Disbursements such as local searches
- Survey costs
- Mortgage arrangement fees
- Estate agent fees
- Removal costs
- Insurance
Getting to grips with the costs you need to cover can help you create a realistic budget for your purchase. Including every cost in your calculations will ensure there are no expensive surprises later down the line.
Carry out property surveys
You may benefit from getting a detailed survey of the property you’re considering buying. This will help to identify any structural issues or other defects which could prove costly.
If problems do come to light through a survey, you may decide to renegotiate the purchase price to cover the cost of remedial work or not buy the property at all.
If you had a survey and existing issues were not identified, professional negligence may have occurred. This means the professional failed to carry out work to the necessary standards. If in doubt, you can seek advice from experienced professional negligence solicitors.
Comply with legal and regulatory requirements
There are key regulations and legal requirements that must be followed, whether you’re buying to live in the home, rent it out or renovate.
For example, if you plan to do any work on a property, you may need planning permission and building regulations approval. The government website explains that you may need approval for the construction, extension or alterations of your building and that it’s important to “research your particular project”.
For example, you may need approval for alterations to “replace a fuse box and connected electrics”, “install a bathroom”, “replace windows and doors”, “install or replace a heating system” and more.
It’s important to get approval before starting work as you could be prosecuted or fined if you do not comply with regulations.
There are many ways you can avoid costly mistakes when purchasing property, helping to protect your investment. If you’d like help or advice regarding property, you can find useful information on housing via Citizen’s Advice.
