EXPLAINER: Essential tips to consider when buying property

When deciding which house to buy, planning is essential. Before you search for your dream house, it is wise to list what you are looking for in a property in order of importance.

Every property will be flawed, but it must fit your needs and requirements as much as possible. Some of the most practical factors which should be taken into account when purchasing a property are:

Location!Location!Location!

It might seem like a cliché, but the location of a property is a significant factor prospective buyers should consider when bidding on a property.

What quality of services are offered in the area? Do they suit your needs? How far is the nearest shop? Have you researched the local schools? What are the transport facilities offered? Will you ever need to avail yourself of them?

Different people will have different requirements, so it is vital that you decide if the location will satisfy your needs.

Look to the future

Investigating any developments that may be planned for the locality is essential. Have you checked with the local planning office? You certainly don’t want a busy road outside your front door if your dream house is a small cottage in a quiet country setting!

The day you buy is the day you sell

When buying a property, even if you don’t intend to sell it, you should always think of its future market value. If we have learned anything over the last few years, it is that nobody knows what is waiting around the corner.

A prudent buyer will purchase a property that is likely to retain or increase its market value.

The cost and financing of the property

It might seem obvious, but can you afford the property you want? The “price tag” on the property may not be the amount of money you will need to move into your new home.

All prospective buyers should consider additional charges, such as estate agents’ fees, solicitors' fees, stamp duty, registration fees, survey fees, or any expenses that may be incurred for renovating or furnishing a property.

Knowing how much money you can afford to spend on a property is essential, and having mortgage approval from the bank or lending institution is crucial at this stage.

What costs should buyers be aware of when buying a property?

When buying a property, many additional hidden costs are involved, apart from the purchase price of the house.

• Stamp Duty: Stamp Duty is payable on all transactions involving the purchase of a property and will depend on the house’s value. Stamp Duty is usually 1% of the purchase price, up to a maximum of 1 million euros.
• Search Fees: Solicitors must carry out specific searches on a property to ensure there are no skeletons in the closet which may come to haunt you in the future. Search fees will vary depending on the extent of enquiries to be made.
• Solicitors Fees: This will depend on several factors, such as how much is paid for the house and the title on the property.
• Surveyor Fees: A surveyor needs to assess the condition of the property. For example, if there is a substantial crack in a structural wall, this is something you need to know about when buying the property, as it could stand to cost you significantly in the future.
• Registration Fees: This is the cost associated with registering a title with the Land Registry.
• Insurance: Insurance must be implemented when the purchase is completed. It is the seller’s responsibility to have the property insured up to the closing date, and then once the deal is completed, it is up to the purchaser to insure the property. Lending institutions will also insist that mortgage protection is taken out. Mortgage protection insurance will pay off the remainder of the mortgage if the mortgagee dies.

BER Ratings?

A BER Certificate is required for all properties being sold or let. A BER Certificate is a certificate informing how energy efficient a property is. The property will get a rating from A to G, depending on its efficiency.

BER ratings will only become increasingly important with the passage of time, as the weight given to environmental conservation and inevitable carbon taxes grows.

Afterthought

To avoid any delays with meeting the closing date, it is essential that you have your finances in order. If you are getting a loan, it is time to ensure that all of the conditions imposed by the bank have been complied with; for example, your home insurance and life assurance should be in place.

For further advice or if you wish to discuss any other legal area please contact reception@lynchsolicitors.ie or telephone 052 6124344.

The material contained in this blog is provided for general information purposes only and does not amount to legal or other professional advice. While every care has been taken in the preparation of the information, we advise you to seek specific advice from us about any legal decision or course of action.

*Sponsored Content