http://i1065.photobucket.com/albums/u383/gymbunnymummy/hidden-costs-of-buying-home-2_zpsgcmh4iox.jpg
Preparing to take your first step onto the property ladder can be an exciting time, but it’s pretty scary too. You’ll need to keep your wits about you when you buy a house if you want to avoid getting into a financial mess. What you don’t realise when you first take that big step is that there are a whole host of other expenses to cover. There are so many hidden costs of buying a home.
UPFRONT EXPENSE
Lots of first-time property purchasers fall into the trap of stretching their budgets right to the limit to cover the asking price of a home without considering the additional upfront costs they will need to shell out for. These expenses can include structural surveys, legal fees, taxes, mortgage fees and removal costs. When you’re calculating how much you can afford to spend on your house or apartment, make sure you take these extras into account.
REGULAR OUTGOINGS
The ongoing expenses connected with owning a property can also trip unsuspecting purchasers up. Bear in mind, it’s not just your mortgage repayments you’ll face once you move into your new home. You’ll also have to pay home insurance. Contents cover is optional but recommended, while buildings insurance will be considered mandatory by your mortgage lender. This financial protection covers your home against floods, fires, subsidence and other disasters.
Then there are property taxes to pay, along with bills for water, gas, electricity, internet, TV and more. Before you commit to purchasing a property, try to estimate how much your taxes and bills would total each month. This will help you to determine whether or not you can afford to run the place.
UNPREDICTABLE COSTS
As well as these regular expenses, it’s important to factor in unpredictable, one-off costs and try to leave some leeway in your budget for them. For example, you might find you have to make home repairs when you first move into your property and, over time, you’re bound to need to replace appliances, furnishings and fixtures. A sudden boiler breakdown or roofing repair could blow a hole in your household finances if you don’t have some savings in place.
There’s no need to let additional expenses like these put you off taking your first steps onto the property ladder, but do make sure you factor them in when you’re choosing which home to buy. By thinking about these costs now, you can avoid nasty surprises further down the line.
And estate agents fees, solicitors fees – the list goes on. But once you’ve got it (and keep paying the mortgage!) it’s fab 🙂 #homeetc
Stephanie recently posted…The future’s bright…
So true, I love owning our own home & knowing we’ll be mortgage free at 45 is a massive bonus over renting!
Gym Bunny Mummy recently posted…WHERE THE MAGIC HAPPENS
This is SUCH a great post. I think people forget about all the fees — searches, surveys PLUS (if you’re selling) the percentage that you have to pay the estate agents at the end. Some of them don’t even work for it — they just wait for the houses to sell themselves! Thanks so much for linking up with us pet 🙂 #HomeEtc
Caro | The Twinkles Mama recently posted…Home Etc #18 â Home and Garden Inspired Blog Hop
I know, so many hidden costs involved that you just don’t realise. We looked into moving & decided to extend instead x
Gym Bunny Mummy recently posted…SUNDAY SWEETS LINKY | 27TH SEPTEMBER 2015
It is SO expensive. We have just moved and all the ‘little extra’s’ add up so much! All the furniture we need is adding up too! It is a good idea to work it all out in a spreadsheet and then you can plan. Great post 🙂 Thanks for linking up, lovely to have you again – and thanks for sharing 🙂 Jess xx
#HomeEtc
mummyofboygirltwins recently posted…Home Etc #18
There’s so many costs which is especially hard on first time buyers. We decided not to move due to the extra expense & instead extend up into the loft x
Gym Bunny Mummy recently posted…MY VINTAGE KITCHEN WISHLIST