7 tips for planning a budget when buying a house

7 tips for planning a budget when buying a house

Buying a house is one of the most expensive purchases of your life and it’s essential to budget properly or you’ll find yourself in financial distress very quickly. With these 7 easy tips, you’ll find budgeting for your dream property easier than A, B, C.

Get organised

Choose an evening and sit down with your financial paperwork. You need at least an hour to do this correctly and also need to be level headed. Look at things from different perspectives and if it means you have to wait a few months before putting an offer in, then so be it. The larger the deposit the better position you will be in so the further you plan ahead, the larger deposit you can raise.

Consider your credit score

A good credit score will help you secure a mortgage and is one of the most common things that buyers overlook. Stay on top of your income and outgoings, pay every bill on time and make sure that you are on the electoral register.

Look at your income

Calculate your income by adding up your monthly income as well as any savings. Using a spreadsheet on your laptop can make things easier to look at.

Look at your outgoings

Go through all your bank statements and work out what your expenditure is. It is essential to NOT guess, as this will make budgeting very hard. Consider petrol, meals out, beauty and holidays. Cutting out your daily coffee and making your lunch will help and why not sell some of your old clothes on eBay?

Create a plan

Once you have worked out how much money is coming in and how much is going out, it’s time to work out a plan of how much you can afford and how much you can save a month. It is a good idea to look at your energy providers and see if switching tariffs could save you money as well as looking to change your insurance to a cheaper one.

Consider extra costs

There are various fees associated with buying a house so as well as the initial property price, you also need to budget for stamp duty, surveys, legal fees, agent fees and removal costs.

Stick to it

Whilst it may be difficult to say no to that night out or that brand new outfit, in the long run weigh up your options. Is any of the stuff really going to matter when you’re sitting in your very own home? Sticking to a budget for a short while will pay off and the benefits often outweigh the cons.

If you have any questions about budgeting then please speak to one of our experts today.

 


Get in touch with us

A change of tenancy is a useful opportunity to review more than the rent. From property condition to compliance and management, a little preparation this autumn can help create a smoother next let.

If moving is starting to feel more realistic, September is a useful time to prepare. Understanding your budget, priorities and local property search now could make things much easier when the right home appears.

A new government scheme could help first-time buyers purchase with a deposit of just 2.5%. With more details expected at the October Budget, here’s what prospective buyers need to know.

Hoping to be in your next home by Christmas? With property transactions taking months rather than weeks, October is the time to understand what’s realistic — and why it can still pay to get moving.