Buying a property is probably the biggest investment you will ever make. This is why it is so important that you make sure you are financially ready to make this purchase. The trouble is that a lot of people feel they can afford to purchase a new home, and then when they do so, they start to run out of money, or they struggle from month to month. The reason for this is because they have underestimated the expense when doing their budgeting. With that being said, continue reading to discover the most overlooked costs of buying a property.
Legal expenses – There is only one place to begin, and this is with legal expenses. You are going to need to hire an experience conveyancing solicitor to ensure that the transaction is handled properly. Moreover, you need to take into account the various legal fees. Do you need to pay stamp duty? If your property is less than £200,000, and it is your first home, you may not need to purchase stamp duty.
Insurance – A lot of new homeowners overlook the fact that they are going to need to buy insurance. There is one golden rule here that can save you money, and this is to avoid buying through the lender automatically. Mortgage lenders make large commissions on contents and buildings insurance, which means you will almost always end up paying a higher rate.
Fixtures and fittings – Sometimes fixtures and fittings are included in the sale price, so you may not have to worry about this. However, you may require extra fixtures and fittings that are not incorporated into the sales price, so make sure you keep this in mind.
Property survey – Another important element of the property buying process that you cannot afford to overlook is the survey. A basic survey will cost you roughly £300, although some lenders do offer this free of charge, and it is referred to as a homebuyer’s report. However, if you can afford it, it is definitely worth buying a full structural survey. This may cost anything up to £800, but it will be extremely detailed, which is why it comes recommended for large properties especially.
Moving costs – Last but not least, do not forget to factor in all of the costs that are associated with moving. If you are going to a completely new area of the country, or even abroad, this can cost quite a bit, so you will need to calculate it. Contact different removal firms to compare quotes.
As you can see, there are a number of different costs that tend to be overlooked when it comes to buying a property. If you can draw together an accurate budget, you can ensure that you have your calculations spot on so that you can determine whether you can truly afford the property you are thinking about buying.
*This is a collaborative post.
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