Buying your first home can be both exciting and overwhelming.
However, it is not simply a question of finding a property you fall in love with and can picture living in.
With the cost of living and the sky rocketing price of property, getting your foot on the first rung of the property ladder is getting more and more difficult.
You might have saved for years and years to put together a deposit to get you started. But saving for the deposit and determining your affordable monthly payments is not where the cost ends.
Unfortunately, there are several costs of purchasing your first home that you don’t want to forget about.
Legal Fees
Whenever you buy or sell a property there will be legalities involved.
A solicitor or licensed conveyancer will be required to ensure all the legal work necessary is carried out. These fees can cost from several hundred to a few thousand pounds. They should, however, include all local search fees so you know if there are any issues with the property or surrounding area you plan to buy. You certainly don’t want to believe you are buying a little country cottage only to have a new motorway built across the bottom of your garden!
Home Buyers Insurance
Unfortunately, when it comes to purchasing a property, breathing easy is rarely possible until the keys are firmly in your hand and your new door is closed tight behind you.
More than 300,000 property transactions fell through in 2020. Properties were either withdrawn from the market or buyers simply gazumped by sellers.
Gazumping is not a rare occurrency, caused by sellers who go on to accept higher offers from other buyers after initially accepting an offer. This creates a waste of time, money and increasing stress levels for the buyers let down.
Taking out home buyers insurance, while not compulsory, is undoubtedly strongly recommended. One small, single payment offers protection against any eventuality that might cause your property purchase to fall through.
Home Surveys
Getting a survey carried out professionally on any property you are planning to purchase is vital. There are different levels of surveys; some more thorough than others, and you get what you pay for.
A basic survey will obviously cost less than a full structural survey, but won’t reveal any more serious underlying issues the property might have.
If a survey reveals issues that are fixable and you decide you still want to purchase the property, you may be able to negotiate a lower price with the seller to take into account the work that needs carrying out.
Removal Costs
Moving companies will vary in cost depending on factors including distance between locations, the type and quantity to be moved, maybe the day of the week and various other logistical matters they need to take into consideration.
You may decide to go for the ‘one man and a van’ option and or to hire a vehicle and do the majority of the removals yourself. Whichever you decide on, make sure you consider the cost and include it in your overall property purchase budget.
