A question we get asked alot right now is whether now is the time to be stretching yourself to buy, given the recent unsettling first half of the year. Although this is an incredibly important question, it’s easy to get caught up in the moment, read the headlines, or learn that many businesses are not performing as they were last year. Our advice to to try to look beyond the current climate and imagine where the market, economy, your personal situation will be 6 months from now. Or 1 year from now. Where will you be 5 years from now? By doing so, this decision can make a significant difference to your financial position many years into the future.

It’s not uncommon, especially in London, to see homeowners trading up several times as they move through different stages of their lives from job relocations, children leaving the nest, retirement, a pay rise, new additions to the family – the list goes on.

The average Brit will own 4 to 5 homes in their lifetime and a recent survey suggests that 27% of homeowners get the urge to move every 5 years, and a surprising 12% actually want to move every year! However, acting on this urge to move every few years can be a lot more expensive than you think. You could easily spend £100,000+ in estate agent commissions alone, not to mention lawyer fees, moving costs and stamp duty over a 50 or 60 year period.

Buying your first home will not feel entirely comfortable, and it’s natural to question whether you are paying a fair price or whether you need the extra space a spare bedroom brings, or if you need to be as central as your friends say you do. One of the most common regrets home ownership brings is often, a buyer will feel they should have gone for a larger property which would suit their requirements for longer. Yet at the time, buying the 1 bed over the 2 bed suited their requirements perfectly. Only now, they have to carefully consider the costs involved with moving and buying again.

Whilst the cost of borrowing is at a historic low, and assuming your career prospects look promising, with careful financial planning, managing a mortgage should only get easier with time. Buying a property with a 5-10 year plan allows for prices to rebound should the market take a knock. These knocks are always short lived in London due to limited supply of new housing.

So how do you future proof your home for the next 5-10 years? You want to avoid getting that 3 year itch and so stretch to buy something you can grow into. Imagine where you will be 3, 5 or even 10 years from now. The cost of property, borrowing and stamp duty is going up so if you can make it work today, why wait?

If you’re going to stretch, then make it count. Location is usually at the top of the shopping list, but if you’re stretching your budget to get the location you want, but you can see yourself outgrowing it within a few years, then you might want to reconsider. Equally if buying in a certain location means that you will be close to your friends or your favourite restaurant, then it’s a reasonable compromise as long as it will serve you well for the coming years.

There is often a perception that new build developments carry a premium because of the shiny marketing suites and brochures, but perhaps there is more to it than just the headline asking price. When you consider future renovations to a period property i.e. replacing the boiler, roof, windows etc, as well as the running costs, the long-term play on a new build can put money back in your pocket.

Your 3-5 year plan doesn’t need to start from the minute you get the keys to your new home. Many savvy first time buyers are now purchasing homes off-plan, with as little as a 10% deposit locking the property in at today’s prices. Buying off-plan gives you time to top up your deposit as the development is built and not only that but there are developers who will contribute to your stamp duty and legal fees meaning you can put down a larger deposit when you come to complete. In addition, Help to Buy is the governments answer to shared ownership, except there is no rent to pay on the governments share for 5 years!

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Happy New Homes hunting!