29 Apr How to be Financially Prepared for Your New Home
You’ll face many costs when it comes to buying a new home, from conveyancing costs to factoring in any renovation work in the new house. If you prepare financially for your move, you’ll be guaranteed a stress-free experience.
This article will highlight the main costs that you need to factor into your budget and how to prepare for the costs of your new home
Work Out How Much You Can Afford
Before you even start your search for a house, you should have a rough idea of how much you can afford and set a realistic budget. Factor in how much you’d be able to afford in monthly mortgage repayments and set a goal for your deposit amount. Don’t push yourself too hard with an unrealistic aim of how much you can afford, you’ll only be disappointed.
Start Saving Early for a Deposit
The earlier you start saving for a house deposit, the more financially prepared you’ll be when it comes to buying a house. By starting early, you can save away a little each month your savings will soon start to build up. You can use a deposit calculator to work out how much you need to save each month and for how long before you’ll have enough saved. If you take advantage of government schemes such as Help to Buy: ISA, you could get a bonus of up to £3,000 for your deposit savings. Note that the deadline for opening a Help to Buy: ISA is 30 November 2019.
Factor in Conveyancing Costs
As soon as your offer has been accepted on the house, you will need to hire a conveyancer to take care of the legal side of buying a house. Make sure you factor in the cost of conveyancing into your budget so you’re not hit with a surprise fee. Conveyancing will be a vital part of moving into a new home as you will become the official legal owner of the property.
Don’t Forget Property Survey Fees
One of the first few costs you’ll encounter when moving house is a property survey. Once your offer has been accepted you’ll need to get a survey. Depending on the type of property, you will most likely need a RICS homebuyers report. This survey will cover everything at a reasonable price. If the survey highlights issues with the house, then you can use this to renegotiate your original offer.
Add in Price of Removal Company
You will need to factor in the cost of the removal company to your budget, including any additional services such as packing or furniture dismantling. The cost of your removal company will depend on the distance travelled as well as the number of items you’re taking with you. To keep removal costs down, you should declutter some of your personal belongings before getting a quote.
Factor in Renovation Costs in New Home
If the new house will need renovation work or decorating carried out, you will need to factor this into your moving house budget and on to the cost of the house. Work out roughly what you plan to do in the house at the searching stage and add this into your moving house budget. Don’t forget to consider the cost of the equipment to decorate as well as a tradesperson for any building work.
If you make sure you factor these costs into your moving house budget, then you won’t have to worry about being unprepared financially. By factoring in these costs at the beginning of the process, you won’t be met with any hidden fees when it comes to moving house. Our