Guild Blog: Golden Principles for Buying Property

Not all property purchases are equal. While one property investment could be the foundation to building wealth, another could be a monetary black hole. What is the difference between the two?  To ensure that you are making the most out of your property purchase, it is vital to be well-informed, savvy and make the right buying decisions from the outset. The choices you make during the property buying process will have a significant impact on the potential return on your investment in the long term.

 

Simply purchasing a home at what is considered a fair market value will not guarantee that you will see good returns in the future. Here are a few golden principles that you can apply to any property acquisition:

 

Do the research and ask questions

The first step is to decide whether you are purchasing the property as a home to live in or for investment purposes. This decision will have a bearing on how you will approach the purchase. If you buy the property with the intention of living in it as your primary residence, the decision-making process will be far more emotionally guided. In this instance you will consider aspects of the property and the surrounding area that appeals to you personally. However, if the property is for investment purposes, it is more important to research what appeals to possible tenants in the area and who the tenants might be.

Although it is possible to find a lot of information about an area online, nothing can replace checking out the location in person. Take the time to drive around the area and walk the streets. Consider what the traffic is like and who your potential neighbours could be, as well as the local facilities and amenities. Local estate agents will also be able to provide you with information regarding the local property market and recent stats and figures of sales in the area.

 

Keep it simple and stick to the basics

Irrespective of the property market phase or external factors such as Brexit, sound property buying principles remain true. These include the property’s location, the value per square foot and the potential rental yield. These factors will always be the key criteria to base your decision on.

 

Subtle variances can have a large bearing

Never underestimate the importance of location. Two homes can have the same features but have very different values depending on their location. For example, the average house price can vary by as much as £500,000 from one tube station to another in London, so it might be worth sacrificing a few extra minutes on your commute. It is even possible for homes to have different values based on which side of the street they are on. From an investment perspective, purchasing the worst home in a sought-after area is better than buying the best home in an area that is not as appealing.

If you are buying with the intention of letting the property out, you will need to consider that different aspects will be attractive to different people, so discovering your niche market is essential. As an investment buyer, you should also look at how many other rental properties are available in the area before you buy. The rental sector is driven by demand, and an investment could fall flat if there is an oversupply of properties available for rent in the area.

 

A plan is paramount

If investing, it is important to think about what you would like to achieve with your property portfolio and what needs to be done to get there. If you are buying a home to live in, it is essential to think about where you would like to settle for the next five to ten years.

Having a clear plan in place will help you remain focused and will give you something to work towards. Never limit your thinking to what you can afford right now, but rather what will be possible for you in the future.

 

Get rid of debt

Access to finance is a key element to any property transaction. While around 30% of buyers can buy a home in cash, most buyers will require a mortgage to purchase a home. To increase your chances of getting a mortgage approval, ensure you have a favourable debt-to-income ratio and keep a clean credit record.

It is also vital to have a deposit of between 10% and 20% of the purchase price of the property, as well as additional funds for solicitor’s fees, stamp duty and various other costs associated with purchasing a home.

 

A home is more than bricks and mortar

Although a return on investment is often at the core of every property buying decision, there are other aspects to be considered. The basic principle of purchasing a property is that if you wouldn’t want to live in it, it’s not likely many others would either. The property should appeal to you and you should want to own it.

 

If you are looking to buy a home you’ll want to own contact your local Guild agent.

Guild Blog: How can you tell if an area has good community spirit?

Both Ripon and Thirsk have shown true Community Spirit over October and November with the Halloween Pumpkin Trail and the Commemoration of 100 years since the end of The Great War.  Check out our page to see what the local area has been getting up to … https://joplings.com/lifestyle-magazine-silhouette-soldiers-by-john-durkin/

 

Buying a property and moving to a new area can be a daunting prospect. There is nothing that will make your new house feel like a home like making new friends and getting involved in local events. Being involved in the community can bring a sense of belonging, fill your social calendar, and make it easy to find friends. But how can you tell if an area has a good community spirit before you move there?

 

Visit local community centres

Take time to visit local community centres, sports clubs, church halls, cafés, and local shops to see what’s going on. Find the notice boards for information on local groups and events.

Meet local people

Talk to the local people on the high street. If they are happy to stop and help a stranger, it’s a sign that the community is open, friendly and trusting.

Check local social media pages

A lot of community planning has now moved online. Try searching for Facebook groups and small websites with the name of the town or village. Look at how active the pages are to see if people are engaged.

Research local events

Pick up a local newspaper to find out about upcoming local events. Plus, it’s a good way to find out about the crime rate in the area.

Contact us

Speak to the local Guild Member, as they will know the area like the back of their hand and will have a finger on the pulse of local activities. Be sure to quiz them during a property viewing, or pop in to see them when you’re in the area.

The Guild is a network of the best 800 independent estate agents around the country. Find out why you should choose them to sell your home. Click here to find your closest Guild Member.

 

Guild Blog:Top Tips to Prepare for a Valuation

It’s Spring!.  The sun is shining and snowdrops and daffodils are peeping through the brown Winter earth.  Is this making you consider moving to a new home?  Would like an idea on your property’s value?

 

Contact our Ripon Office on 01765 694800 or our Thirsk Office on 01845 522680 to arrange for a FREE Market Appraisal.  

 

Are you thinking of purchasing a new home? Wondering about your homes’ value? Click on The Guild of Property Professionals‘ blog video below to find some handy tips to prepare your property so that it looks its best.  We would be happy to come out to your property to discuss the value of your property and a marketing strategy.

 

Joplings is an established Property Consultancy which is a true #OneStopPropertyShop catering for all your property needs. 

We are your local The Guild of Property Professionals, offering a regulated service with trained staff members, approved by Trading Standards.

Guild Blog: What is the ‘No Sale, No Fee’ Method for selling your Home?

There are different types of estate agent model out there, but at The Guild, we recommend the ‘no sale, no fee’.

 

This means that you don’t have to pay until your house is sold, so there is no risk of having to pay for no results. The ‘no sale, no fee’ model is used by nearly all ‘traditional’ estate agents, which means your friendly local estate agent who has a shop on the high street. Be sure to look for this when you decide to sell your home. When you choose the ‘no sale, no fee’ option, it means that your estate agent wants to sell your home as much as you do – they won’t get paid if they don’t!

 

What are the differences?

DIY model 

  • Pay a flat fee up-front
  • Payment is due no matter if the agent sells your home or not
  • Usually conducted online

‘No sale, no fee’ model 

  • No commission is taken until the sale goes through
  • Agents are paid on commission, so they want the same as you: to sell the home
  • Usually has a high-street office, giving consumers an in-person point of contact

 

The choice is yours, and you are free to pick the model that best suits your needs. At the Guild, we recommend the ‘no sale, no fee option because agents with a commission-based fee structure aren’t paid until they get results, meaning their priority is the same as the homeowners: to sell the property. 

 

Iain McKenzie, CEO of The Guild, said: “There has been a rise in the number of DIY packages with up-front fees available to consumers, but no-one has truly explained the pros and cons of each service, so we want to educate the public about the different options that are available. At The Guild, we strongly recommend the high-street option of ‘no sale, no fee’ to ensure that the seller gets the best service and best price for their home in the shortest possible time.”

 

The Guild is a network of the best 800 independent estate agents around the country. Find out why you should choose them to sell your home. 

Click here to find your closest Guild Member.

Guild Blog: Making the right purchase for you!

Research has revealed that around 80% of homeowners have at least one noteworthy regret regarding their home buying decision.

 

Here are our five top tips to ensure you make the right choice while on the hunt for your next home:

 

1. Focus is key

A property may appeal in terms of your wants, but not necessarily tick the must-haves boxes. Make sure that the property meets your main objectives otherwise it can’t be the right home for you.

2. Find the right solicitor for you

It is imperative that you choose and work with a solicitor that you not only trust but feel comfortable with too. A good solicitor will keep you well-informed and will guide you through the buying process. The service your solicitor provides can dramatically alter your home buying experience.

(Ripon and Thirsk both have local solicitors who will help you purchase or sell your property.  Please do not hesitate to pop in and ask us who we would suggest)

3. Get a second opinion

Whether you have a close friend or trusted family member, it always helps to get a second, unbiased opinion. Better yet, hire someone to look at the property to give you an idea of the work that will need doing once you move in.

4. Check your finances

There are various unexpected costs of owning a home. Make sure you calculate what is within your budget, taking costs such as council tax, insurance and service charge into consideration.

5. Don’t engage in a bidding war

Focus on finding the right home for you, and don’t get caught up in a bidding contest. Walk away from the deal if it gets out of hand to ensure you don’t overpay. Remember, a higher price will mean a larger deposit, higher fees and thousands in additional interest on a larger mortgage.

 

Are you looking to sell your home? Contact your local Guild Member for help through the moving process.