Are you a first time buyer and property ladder mover or a property investor? Buying properties can be as simple as it is complex. Take for example an business owner buying a commercial unit where the business owner has the asking price in cash and ready purchase, simple or complex? Read the full buying a commercial property with cash story.
There are many stages involved in buying property and there are different reasons for buying a buying a property. The dream of buying a property to live in and to eventually own it has always been part of the British idealism an Englishman's home is his Castle. Whilst this phrase is often used it's very far from reality for the large proportion of home owners (mainly that have large debts and cannot pay off the mortgage). So, Castle's can be safe whilst at the same time they can be under constant attack by invaders!
The dream property, whether it is a rose cottage in the middle of the country, an ex council flat on the 20th floor or a Gerkin shaped building the price will always boil down to simple mathematics of market value and affordability. What can you afford to buy, why do you want to buy it and is the property priced accurately in the current market.
The processes involved for buying properties will vary hugely for everyone in their own respective situations. First time buyers with little support from a wider family with little to no experience could end up paying excessive fees to all parties involved in buying and selling the property. Compared to a property investor who has a network of solicitors, lenders, conveyors and other property investors. Whether this is a vulnerability stress test to factor in for lenders in the future is a good question. Eg, are first time buyers more likely to default on mortgage repayments compared to an experienced property investor (Landlord) because a) the initial purchase was costly and stressful rather than cheap and hassle free (not factoring in the repayments for the Landord's property will be made by tenants not the buyer of the property!).
Buying a property can be stressful and it can be for many reasons. If you are a property investor and end up becoming a Landlord the stress is, getting good tenants. If you are just an ordinary person with a 9 to 5 your stress is loosing your job. Both of these stresses are down to a) how much cash you originally have to buy a property and b) how much cash flow you generate moving forward. This is where an indepentent Financial Advisor can help you with the concept of life is a business!