OUR HOME

OUR HOME
OUR HOME

tips

tips
BLOGGING TIPS

MONEY SAVING TIPS

MONEY SAVING TIPS
MONEY SAVING TIPS

Costs Of Buying A Home For First Time Buyers


House hunting can be exciting but it can also be rather daunting and time consuming, no matter how many times you've been through the process, but even more so for a first time buyer. When buying a house it is important to factor in all the upfront costs, mortgage costs and on going costs involved in buying and running a property. You've probably asked yourself where do I start? Well aside from your monthly mortgage payments here are the main cost factors that you need to budget for when buying a home.

1. Be sure you can afford it

Before looking at properties, you'll need to save for a deposit. Avoid setting yourself up for disappointment by getting your sums straight first. Do your homework and see how much you'll need to borrow and work out how much deposit you require. Generally, you need to try to save at least 5% to 20% of the cost of the property you would like. For example, if you want to buy a home costing £150,000, you’ll need to save at least £7,500 (5%). Saving more than 5% will give you access to a wider range of cheaper mortgages available on the market and will be worth it in the long run.

2. Budget for any upfront costs of buying a home

Survey costs - A survey is essential to and will also make you aware of any underlying issues that the house may have such as asbestos. If the home you are interested in buying has asbestos you may wish to seek advice from specialists in asbestos claims such as Your Legal Friend. They want to help encourage house hunters and new homeowners to be aware of the dangers of asbestos in residential properties (it is possible for any house built before the year 2000 to contain it) and be safe if they decide to buy, decorate or renovate. Survey's can cost anything from £250 to £1000. There are three types of surveys which include a condition report, a homebuyer report and a buildings survey. The type of survey required tends to vary in accordance with the age of a property.

Valuation feeThis is charged by the mortgage lender to assess the value of your property to determine how much they are prepared to lend you. Depending on the value, the cost can be between £150 to £1,500. Some lenders may not charge depending on the mortgage type.

Solicitor’s (Legal) fee - To help you through the property buying process you will need to hire a solicitor or licenses conveyancer to handle the legal aspects of the purchase, otherwise known as conveyancing. They will be responsible for drawing up contracts doing local searches, sorting out the stamp duty and transferring the payment for your property. Fees will vary but you should typically allow between £500-£1500. Some solicitors will charge by the hour where as others will do the job for a set amount so it's worth asking for these fees upfront. 

Removal costs - If you're moving from a your parents house you'll most likely not have that many belongings so may only need to hire a van or require help from friends and family to move. However, if you are currently in a rented properly you're more than likely to have built up a house full of furniture and have many items so hiring a removal van may be worth while. This can cost anything from around £1000 right up to several thousand pounds depending on what services you require. It's a good idea to de-clutter before you get an estimate as some companies charge you according to how much stuff you have. 

Stamp Duty - Stamp duty land tax is a tax charged on all purchases of houses, flats, land and buildings in England, Wales and Northern Ireland. Purchases that cost less than £125,000 are exempt from the tax. Stamp duty can be a fairly hefty charge, so it's important to factor it into your budget. The amount of stamp duty buyers pay varies depending on the price of the property. Go to Zoopla's stamp duty calculator to work out how much tax you will need to pay on your property.

3. Be aware of any hidden costs

Buildings insurance - Most lenders will require that you have buildings insurance so that you are covered in the event of structural damage occurring to your home. This type of insurance typically protects you from having to pay out against events such as flooding, a fire or subsidence. The amount that you have to pay for home insurance will generally depend on factors such as the size of the property, its location and how much cover you want for your possessions. If you are buying a leasehold property, it is possible that the cost of building insurance will be included in your service charges. To find the best deals on home insurance shop around on comparison websites like uSwitch

Initial furnishing and decorating costs - Many buyers don't factor in the cost of furnishing and decorating the house. The house may not be to your taste so you may wish to decorate, or put in a more modern kitchen and bathroom. All of which costs extra money.


4. Don't forget about ongoing costs


Council taxThe amount you will pay in England and Scotland is based on the valuation band your property falls under, it’s location and whether or not you are entitled to a discount. Northern Ireland properties are taxed on an individual basis. If you are buying a property on your own don't forget to apply for 25% single occupancy discount. 

Utilities - It's always a good idea to ask the current homeowner (unless it's a new build) what they spend on utilities to give you a rough idea to plan ahead and estimate your monthly costs. Also don't forget to factor in costs for line rental, broadband and TV. 

Maintenance and repairs Your survey should have highlighted any expected costs involved with necessary repairs, but you will need to budget for regular decorating and diy which you may wish to do further down the line once you've moved in. 

Are you currently buying a house or recently purchased one? I'd love to hear your experience below. 

24 comments

  1. Oh, great, your article gives me useful information and a fresh perspective on the subject.

    ReplyDelete
  2. Thank you for a great explanation. I was looking online for a similar idea and really appreciate it

    ReplyDelete
  3. Great article, love your sharing so much, thank you!

    ReplyDelete

  4. Pipeline leak Detection is useD to Determine if anD in some cases where a leak has occurreD in systems which contain liquiDs anD gases. MethoDs of Detection incluDe hyDrostatic testing, infrareD, anD laser technology AFter pipeline erection anD leak Detection During service.
    شركة عزل الاسطح بالرياض
    تسليك مجاري بالدمام
    تسليك مجاري بالرياض
    جلى بلاط بالرياض

    ReplyDelete

  5. افضل شركة نقل اثاث بالرياض - ارخص شركة نقل عفش بالمدينة المنورة
    How to loaD a renteD truck like a pro
    What items shoulD Be loaDeD first? Your fully pACkeD anD properly laBeleD moving Boxes shoulD Be loaDeD first into the renteD truck. شراء اثاث مستعمل بالرياضStACk them vertically anD go higher anD higher against the BACk of the moving vehicle. Make sure the heaviest Boxes stay at the Bottom anD the lighter anD more fragile ones go on the top. افضل شركة تخزين عفش بالرياض
    Your large furniture pieces are next – lay a moving Blanket on the floor, loaD any mattresses or Box springs anD plACe them vertically By the Boxes anD secure them to the siDe wall. افضل شركة نقل عفش بجدة Also, get in the rest of your furniture piece By piece (Dressers, couches, sofas, etc.) anD strap them to the siDe walls as well. The usual Damage on the roaD occurs when heavy items ruB against eACh other, so Be sure to wrap the exposeD surfACes with moving Blankets, BuBBle wrap or olD pieces of clothing for extra protection of your valuaBle possessions. افضل شركة نقل اثاث بينبع

    ReplyDelete
  6. Thank you for a great explanation. I was looking online for a similar idea and really appreciate it

    ReplyDelete
  7. Get your ex back urgently, with urgent love spell that guarantee and celebrate christmas with your Ex dr happy is truly the best africa online spell caster email happylovespell2@gmail.com.. I have been in a relationship for 3 years, me and my partner live here in the England, we lived in two different cities which was only 2 hours away. she used to drive down to see me every week before for the past 2 years.i moved to the same city 4 months now, i thought it was a good thing that i would be more closer to her.she saw me in the first month of when i moved. then she never saw me in the next 3 months, she never bothered to make the effort.then she got a job in London about 2 months ago and she said she would see me but never did.these last 2months she has been avoiding my calls and since he moved he makes excuses saying she is ‘tired’ or ‘busy’ and that she was sleeping’. she always makes these excuses, I’ve been crying my eyes out, I’m lost, confused, heart broken. i feel like it’s all my fault and i don’t want to lose her, all she told me was that the relationship is over she blocked me on whatsapp and facebook. now i begged her to consider me but she’s did listen, she left and i was devastated, i began searching for help and answers, then i heard about a man that can cast a spell to remind her of all the things we have been through together, at first I was scared then i decided to give it a try, and like magic my girlfriend came back, apology and begging for forgiveness, thanks to this man, I’m posting this to help people with similar issues. you can contact him for help too. via mail..happylovespell2@gmail.com or his whatsapp number: +2348133873774

    ReplyDelete
  8. This blog is simply nailed it. The way he carried out the direct approach doesn’t need the reader to think what’s the article is all about. how to design embroidery patterns

    ReplyDelete
  9. For development you need progress. The author actually highlights progressing area in just one article. Applique Embroidery Designs

    ReplyDelete
  10. You have enough to worry about; we’ll work with your insurance company to achieve your complete satisfaction. In fact, we’ll usually do a survey with the insurance companies to make certain each and every policyholder gets everything they are entitled to get. Water Damage Cleanup

    ReplyDelete
  11. Thanks for your article! I have read through some similar topics! However, your post has given me a very special impression, unlike other posts. I hope you continue to have valuable articles like this or more to share with everyone!
    slither io

    ReplyDelete
  12. It’s actually a nice and helpful piece of info. I’m satisfied that you simply shared this helpful info with us. Please keep us up to date like this. Thanks for sharing.

    ReplyDelete
  13. Fabulous blog. Very well described this informative post by the author. Thanks.
    Fix your technical problem with Fixingblog. We are also providing help for Belkin.range.If you have any problem With Router, Range Extender, Antivirus etc.
    Norton.com/setup

    ReplyDelete

  14. Before you plan to install antivirus software on your device, you are required to take
    few important steps to avoid software conflicts with the previously installed versions. please visit
    norton activation code
    or directly visit
    norton.com/setup .
    you can find more topics there.We love to help you.

    ReplyDelete
  15. Pogo technical Support Thanks for sharing this marvelous post. I m very pleased to read this article.

    ReplyDelete
  16. On the off chance that you will manufacture it starting from the earliest stage, you should work out a valuing plan with the goal that you know how much cash to apply for with regards to your antique auto credit. You additionally need to look at that as a loaning establishment may not think you fit the bill for an antique auto credit that you will be building, instead of heading out in. cash advance online chicago

    ReplyDelete
  17. These are very valuable information.

    ReplyDelete
  18. This post is great for me, lots of interesting information everyone can find here for you.

    ReplyDelete
  19. www.mcafee.com/activate - Activate Your McAfee Retail card by simply visiting our website mcafee.com/activate and Get Started with McAfee Security.
    www.mcafee.com

    ReplyDelete

  20. We have a three-part technology to defend against chargebacks. Using our technology frees you up to concentrate on your

    business and keeps up your merchant account so that you can grow your business.
    chargeback management

    ReplyDelete

Thank you so much for taking the time to leave a comment. I love reading them all and will try my best to answer all of your questions. If you would like to contact me for a quicker response please feel free to tweet me at (@ohsoamelia_blog) or email me. Kerry