Are you in the process of buying a home? The it would be a great idea to get a plan in place for these hidden costs!
Exciting times! You have found your perfect home! It is in a great area, and the price is spot on! However, the asking price is just the beginning on this journey of expenses. You need to prepare yourself for additional (often unexpected) expenses which could leave you drowning in your new home.
The unexpected may happen!
For most people who are buying a property the spending doesn’t stop at the price of the house. It easy to plan for expenses such as solicitor fees, lender fees, and house insurance but there can be costs above and beyond this.
How the previous owners leave the property you are buying could have a big effect on your bank balance. If they take out certain fixtures from the home such as the fridge-freezer, washing machine, or all the light fittings, then you will have to pay out to replace all of these. While these sorts of purchases seem like pocket money compared to buying a home, the cost eventually adds up, especially if you were on a tight budget as it was.
You are also going to need spare cash for any immediate improvements your new home may need, unless you have negotiated these into your house purchase. However, these costs generally are the least hidden.
If your buying a house with a mortgage it is likely a surveyor will be instructed by the mortgage company. However, if you haven’t purchased the property with a mortgage it is highly advised to hire a surveyor yourself. You want to ensure the house you are moving into isn’t a death trap. A surveyor looks at the foundations of the property, the electrical wiring, and for a variety of other problems such as wood rot. Another problem is that these issues aren’t often covered by home insurance either. If a serious problem is discovered you need to decide if you still want to go ahead with the purchase. Either way hiring a surveyor and any problems discovered are all extra costs to add to your potential expense plan.
Consider your home comforts
Another cost can be your own comfort. There are a few things you may not have considered until after you have moved in. For instance, are you used to having fibre-optic broadband? Is your house geared up to have fibre-optic running to it? Or are you going to have to pay to have that comfort?
Remember, as well if your going from renting to owning a property, you may also be faced with more or higher bills, such as utility bills.
The best idea to avoid disappointment and disaster is to be prepared. Research, plan, and budget before you head out house hunting. If your looking at homes in your budget that need improvement, then make sure you research what the costs of those improvements will be. Don’t end up buying a home that will empty your bank account. You may find an older property with a great price tag but remember older properties potentially have more problems and the insurance can be higher too. If you research home insurance and property prices in the area you can then make a more informed decision.
Make sure you know what the maximum price is you want to offer on a house. Then you can look at what funds this leaves you for other costs. This way if you find a house at the top end of your budget, you will know if you have to walk away, or try your luck with a lower offer.
On top of establishing your maximum budget try work out a rough estimate for the additional costs you may come across. Make sure you take your time when choosing the right home, don’t rush! Also be critical when considering older properties, or ones at the top end of your budget. Do not end up out of pocket and stressed when there will be other choices out there. Buying a home isn’t scary when your in the know!
Are you in the process of buying a home? The it would be a great idea to get a plan in place for these hidden costs! Exciting times! You have found your perfect home! It is in a great area, and the price is spot on! However, the asking price is just the beginning on […]
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Michelle Gaffaney - Architectural Director
With a wealth of experience working on a range of projects, Michelle Gaffaney has a passion for design and strong relationships with her clients. Connect with Michelle on LinkedIn