Thrifty property buying tips
James Greenwood
With the cost of living and interest rates rising month by month, Stacks Property Search comes up with some ideas for property buyers who don’t want to overstretch themselves.
Buying a property that you know you can sell
Buy a property that will remain easy to resell if circumstances change. Avoid homes with significant drawbacks (e.g. road noise, an oversized house on a small plot, or projects requiring major work) if you’re concerned about finances or job security.
Keep accommodation flexible. An annexe can provide:
- Guest accommodation
- Rental income
- Home office space
Be aware that the Airbnb/staycation market is not as strong as it was in previous years.
Watch the market like a hawk
Buying a renovation project can be risky due to rising building costs, difficulty obtaining firm quotes, and shortages of available tradespeople.
However, if you have strong DIY skills and time available, a realistically priced project within your capabilities can still be worthwhile.
Monitor the market closely:
- Track how long properties have been listed.
- Look for sales that have fallen through.
- Identify vendors becoming frustrated with delays.
These situations can create opportunities to negotiate attractive deals.
Running costs
If running costs are a concern:
- Be cautious with listed buildings, which can be expensive to heat, maintain, and upgrade.
- Consider retrofitted or newer properties with strong EPC ratings, as they often have much lower ongoing costs.
Location flexibility can also save money:
- Extending a commute by around 20 minutes may reduce property prices by up to 20%.
- Moving just across a county border can sometimes save around 10%.
Save as much as 20%
Small location changes can produce substantial savings.
For example, buying a similar property in Balham instead of Clapham may save up to 20%, despite being only a short distance away.
Council tax rates
Council tax rates vary significantly between counties and should be factored into buying decisions.
For example:
- Rutland is known for relatively high council tax rates.
- Nearby counties such as Lincolnshire, Northamptonshire, and Leicestershire may offer lower council tax and lower property prices.
Being flexible on location can dramatically increase what your budget buys. The same budget that purchases a modest family home in one area may buy a substantially larger rural property nearby.
Buy for the long term
Moving house is expensive and costs are likely to continue rising.
Choose a property that:
- Meets current needs.
- Can be adapted as circumstances change.
- Reduces the likelihood of needing to move again in the near future.
Future potential
Consider buying a property with future expansion opportunities rather than stretching finances today.
For example:
- Buy a two-bedroom flat with loft conversion potential instead of immediately purchasing a three-bedroom property.
- Add space later when finances are more comfortable and the additional room is genuinely needed.
