1. Take nobody and nothing at face value- the house, price, autiuoneer, solicitor, lending institution, the "Loan Approval Certificate", the mortgage "package". broker, insurance company - no one! However friendly, no one is on your side - you must look out for yourself. 2. The glossier the brochure, the smarter the idea, the smoother the sell, the closer you should look and more cautious you should be. 3. The house "price" is the asking price, different from the sellers "desired" price and again from his "reserve" price; and probably different again from the property's true value, not including hidden costs. You desire good value, so put your own value on the house and stick to it. 4. Don't get hooked on one house - keep several in mind - the auctioneer plays a game called 'Call My Bluff'. Don't show your hand or you'll lose your bargaining position and the game! 5. Interest Rates are the key thing to watch - every percentage point counts. Just half percent on say (£50,000) over 20 years represents (£5,000) or a trip round the world! A difference of just 1.1/2% between one lending institution and another is the cost of putting a son or daughter through college. 6. Savings really count. Over 25 years a (£50,000) house costs approx. (£190,000) to pay back (based on average interest rate of 10% plus costs, plus the original sum). Proving that £1 cash is worth £3 borrowed. Therefore, save, save and save again. 7. Set your own limits on your borrowing; there are other things in life beside 'des.res' bricks and mortar, like free time, less pressure and quality of life. 8. Don't put household fittings, furniture, etc., on your mortgage, otherwise the lounge suite costing you (£1,350) today will cost you (£4,050) over 25 years. But will it last 25 years? 9. Shop for the best deals- the best property, the best surveyor, the best mortgage package, the best solicitor and the best insurance package. 10. Remember the house is not yours until it's yours. You won't know how much the house really cost you until the final re-payment has been made and the deeds are in your possession in 15, 20 or 25 years time. Keep up your repayments and keep cool! |