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THE HIDDEN COSTS OF BUYING A NEW HOME

When it comes to making a property investment, there’s no doubt that the biggest and most important cost to keep in mind will be the price of the home itself and how the mortgage covers that. However, when you’re setting up a purchase and costs-of-living budget, it’s important that you don’t forget about the following costs, too.

Conveyancing Costs

When you buy a home, you’re going through the process of a legal contract which includes transferring a lot of money, not to mention the deeds to the home. As such, it’s a legally complex transaction and you’re going to need a solicitor who handles conveyancing like Slater & Gordon on your side.

This tends to cost around one thousand pounds though this fee can change depending on the area you’re in and the prestige of the practice that you choose. You want to make sure you’re choosing a firm that is able to respond to your needs promptly but also has a reputation for attention to detail necessary to handle such a transaction.

The Homebuyer’s Report

When you’re buying a home, you want to make sure you know exactly what you’re getting. Getting a building surveyor to take a look out can help you spot issues that you can then use to reduce the overall cost of the home in negotiations, or at least make sure that the seller takes care of them before you purchase the home. A homebuyer’s report is a less expensive alternative to a surveyor, but can still cost nearly a grand so it’s worth figuring in your budget.

Your Insurance

It’s one of the most vital costs and one that can’t be ignored or avoided, but it’s easily forgotten by first-time buyers. Home insurance is going to make sure that both your home and the contents inside are covered from all kinds of damage so, should something unexpected happen, you don’t have to pay for replacements or repairs.

Brokers like Lifesure can help you find specific policies best suited to your needs. Most first-time homeowners are far from experts on the insurance market so it’s always wise to have someone to represent your interests with the insight you need.

Additional Mortgage Costs

If you’re buying your first home on a mortgage, you may want to consider other mortgage costs such as mortgage valuation, arrangement and broker fees. While some lenders don’t charge for a mortgage evaluation, some may charge according to the property’s value, ranging from £200 to £300. Mortgage companies also require arrangement fees, which might range from £100 to £200.

While some lenders might insist on upfront payment, others can add it to your loan, although you might pay more due to accrued interests. You can also avoid mortgage broker costs, should you get those who don’t charge. However, you may factor it in your budget if you get a mortgage broker who collects a fee.

Fixing Up The Property

Even if you hire the help of a surveyor, you are still likely to find issues with the home that you want to take care of immediately. This can include fixing any leaks, any cracks, and any electrical issues. Most new homeowners will also invest in new locks for the home to make sure that they are the only people who could possibly have keys. The costs here can vary a lot, but it’s important to make sure you at least have a few hundred left over for extra costs post-purchase.

As with all the costs of buying a home, you can make sure that you’re prepared by taking the time to research the market and looking at the options available to you. Give yourself time to find the right options that suit your needs and budget, or consider downsizing your home purchase to make room for the other costs.

The Hidden Costs of Buying a New Home