Your plan should include you, the property and area and the market.
You
How does your current financial situation look? Ask yourself;
How much do I have saved?
How much am I currently earning?
Can I comfortably be able to afford making repayments and all ongoing expenses associated with property ownership?
Do I own anything worth money that I no longer want or need that I could sell to help add to my finances?
Will I be able to service current debts and expenses along with repayments for my property after I’ve bought or should I get everything organised first, before I buy?
After I buy a property, will I be able to;
Keep saving?
Live my preferred lifestyle?
Keep up with costs of living?
Treat myself?
Cover expenses?
Pay for holidays and the wants and needs I have?
If I make a plan, how far into the future will I be able to forecast?
Do I anticipate income increases in the next few years?
Will I be in the same career in the next few years?
Is my lifestyle likely to change over the next few years? i.e. new career, moving, kids, marriage
If I’m in a tricky situation for a few months, will I still be able to keep up with repayments?
The property and area
What type of property are you looking to buy?
What areas are you looking at buying into?
How has the area been performing – Currently, previously and what’s the projected future growth?
What are the pros and cons of the property and the area?
How long do you plan to have it?
How much is it going to cost per year to own?
The market
Assess and analyse all possible risks which may or may not be known before purchasing.
We’re talking about economic conditions beyond your control that will also need to be factored into your decision making.
Questions to ask yourself may involve things like;
What is the current economic situation like? Are interest rates likely to increase or decrease over the next number of years?
What is the current political landscape like? Are there any potential changes ahead that could affect property ownership in a good or bad way?
How is the property market currently performing? Is now a good time to buy or should I hold out temporarily?
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
