Buying a home, especially your first home, is one of the most exciting experiences of a person’s life. Unfortunately, however, it’s also one of the most stressful. There’s no denying that getting your foot on the property ladder is expensive, but, what many don’t realise is that you need to pay much more than just the property’s price tag. There are many more expenses you may not have considered. To keep your budget intact, here are six hidden costs that you should know about.
1. Legal Fees
Although it is possible to handle the legal aspects of buying a home yourself, it can end up costing you much more in the long run. After all, unless you’re trained in property law, you’re almost guaranteed to make a mistake or two. By hiring a conveyancer or solicitor, you always have someone on hand to offer professional advice and avoid any potentially costly issues.
2. Stamp Duty
Stamp duty is a government tax charged when transferring a property to another owner. The costs can vary widely depending on your location and purchase price, with more expensive properties costing you more. Stamp duty can easily add tens of thousands to the amount of your home, but, thankfully, many areas do offer exceptions to people buying their first property.
3. Mortgage Insurance
We all know we have to pay a deposit when buying a house, with most lenders asking for 20% or more of the overall value of your property. If you haven’t got enough cash saved up, you may be required to pay lenders mortgage insurance, with those offering a smaller deposit having to hand over more money. This is there to protect lenders if and when you default on your mortgage.
4. Professional Inspections
You may have viewed your potential new property a handful of times, but, unless you have the experience and knowledge of a professional inspector, there could be various unseen issues. With that in mind, you must ensure you always have a building and pest inspection before buying a house. This provides peace of mind and may even be able to help you negotiate a better deal.
5. Essential Work
Small faults with a property you absolutely love are pretty easy to overlook when buying it. However, you will want to get these fixed before or soon after you’ve moved in. To cut costs, you can complete certain tasks, like painting and replacing light fixtures yourself. However, there may be certain jobs that are best left to those that know what they’re doing.
6. Moving Day
Many first-time buyers focus so much on the expenses involved in buying property that they forget just how moving day can be. When the time comes, you’ll have many things to pay for, from packing supplies to hiring a moving company. After spending so much on a home, make sure you have enough cash left over to actually move into it.
To keep your home-buying budget intact, make sure that you plan for the hidden costs listed above.