Household Manual [antikvár]

CHOOSING A HOME OF YOUR OWN House purchase is one of the most important single steps that any individual or couple has to take. It is therefore vital that thorough research and planning should be carried out first. Decide how much you can afford, and what kind of property you need. Spend as much time as you can looking and comparing before offering to buy property. It is generally advisable to engage a solicitor to look after the legal complexities - called conveyancing - and it will be essential to employ a surveyor to examine your chosen property. It may be worth while buyir^g a house or flat that is not in ideal condition. In such acase, find out if you would be eligible for a home-improvement grant, and whether the building society or insurance company from whom you hope to raise the money would be willing to lend the sum you need on a property in a poor state of repair. Ahome of your own is likely to be your securest protection against inflation, so it is generally sound economyto buy the bestyou can afford. Inworkingoutyour budget, it is reasonable to set off income-tax relief against what might otherwise appear to be insufferably high mortgage repayments. On the other hand, do not fail to take into account all the other continuing, and probably increasing, costs you will have to bear as an owner-occupier, such as rates, insurance, maintenance and repairs. • FINDINQ AHOUSE It is probably best to aart by approaching estate agents in the area of your choice. They know the neighbourhood and local property prices. But remember that estate agents are employed by the seller. Go to a qualified agent - he will probably be a member of the Royal Institution ol Chartered Surveyors or the Incorporated Society of Valuers and Auctioneers. Agents will give you addresses and details of houses that are approximately what you want, Check Ihe information carefully before you view anything, and do not waste your time looking at houses outside your price range. Because of the large fees charged by agents, some sellers advertise their houses themselves in the newspapers. These houses are also worth checking. Whenever you find a house worth seeing, lake the advertised details with you when you go to view it. Take also a notebook and pen and a tape measure, and check the details. Do not accept Ihe description given by APPROXIMATE MOMTHLY INSTALMEfTO FOR HEPAYMEWT MOFTTGAGE If you pay tax ai ihe slanaara rale, the Interest part of each payment atlracisiax relief, so for every pound of interest you pay. nearly two-thirds (depending on Ihe standard rate ol tax) is allowable when working out your taxable income. a house that takes up the maximum loan you can raise and afford, if your income is likely to increase with promotion, age and inflation over the years. The annual cost of paying for the house may also increase, but more slowly. FINDING A BUILDING SOCIETY The most obvious source of finance is a building society, and in times of economic difficulty the best way to obtain a building-society loan is lo become established as a regular saver with the society of your choice. Building societies exist to lend their funds tor house purchase, but Ihey prefer first-time buyers. So if you already own a house, do not assume that your existing building society will automatically lend you money if you buy another one. Some societies moreover will not normally grant mortgages on houses built before 1920. or on flats or leasehold property. Most societies limit loans to 80% ol their valuation of the property. The amount you can borrow will depend on your circumstances, especially your income. People who have a low basic salary but can depend on earning regular commission should ask their employers to give them a statement confirming this. Many societies take part ol a wife's income into account, but it is sensible to find out whether this applies to the society you intend to use before you start to commit your savings to it. Indeed it is worth shopping around before you decide on a society, because Ihey are not all the same. Interest rales vary, and a high-interest yield on savings will almost always mean a higher-lhan-average monthly repayment when you eventually obtain a mortgage. OTHER SOURCES OF MONEY Insurance companies and the local authorities also finance house purchase. Such loans depend on Ihe economy; when times are hard, funds dry up. Moreover, local councils usually limit their loans lo specially needy couples who cannot satisfy building societies' requirements through age or low income. However, they will lend money on pre-1920 houses. Some employers operate home-purchase schemes for their staff; banks, building societies and insurance companies are examples. If you have no idea yourself where to try for a loan, a solicitor - when you find one (see pp. 12-13) - may be able lo put you in touch with the local manager of a building society. Your bank manager may also be able to help; and estate agents can often recommend sources ol linance. Failing all of these, mortgage brokers exist to find money for clients in difficulty, but the conditions and interest charges imposed are often more onerous than those offered directly by building societies. V^hile they can be useful il no other source can help, some brewers charge commission in advance, which may be dillicult to recover ilthe loan fails to materialise The broker is