When it comes to buying a property it’s a very exciting journey but also a stressful one. Buying a property is one of the biggest investments you will make in your lifetime, and then on top of that, there are all the hidden costs that you may not have thought of. From mortgage advisor fees, moving vans, survey, and stamp duty, there are many costs involved in buying a property that you need to consider. Below we have put together a list of nine different costs to consider when buying a property.
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Mortgage Advisor Fees
When buying a property you will need to get a mortgage approved. To get a mortgage you will want to visit a mortgage advisor or go direct with a bank. Most of the time a mortgage advisor will be able to assist you better as they have access to the whole of the market, meaning they can access multiple lenders' rates, offering you the best rate for your circumstance. Some mortgage advisors will charge you to use their services, whilst others may include their rate within the mortgage so that you don’t have an initial fee to pay - it’s always worth checking how the mortgage advisor charges before going with them. After all, they do need to get paid for their service. If you go directly to a bank, you will find they will only offer you rates that they offer. This means you may not get the best rate for your money by going direct. It’s always worth shopping around, a bit like when getting your car insurance. Before seeing a mortgage advisor you can use a debt to income ratios calculator to work out your loan limit.
Furnishing Your Property
You may not have got round to thinking of this yet, but remember that when you buy a property you will need to buy everything to fill it too. This means that you will want to set aside a certain budget that you can use to furnish your property once you have moved in. It’s advised that you make a spreadsheet and input each room and the furniture you will need for each one. Try to think of any hidden costs and make it as in-depth as possible. Once done, you may be surprised at just how much it costs to furnish a property, especially if you haven’t got anything already. It can be worth asking your friends and family if they have anything in their property that they are thinking of chucking out as they no longer have use for it. The more things you can get from family and friends, the cheaper it will be in the long run. Make sure you search google if you are after some inspiration on what to buy for your property.
Moving Van
It’s a wise move to get quotes from multiple removal companies before deciding which one to use. Depending on how big a property you are moving from and if you have much stuff, a moving van can add up and should certainly be a factor in your costs. Removal companies offer a variety of services to make your move as stress-free and quick as possible. They can help with things like packing your items in your rented apartment, providing boxes for your items, storage space if you don’t want to take everything with you, amongst other services. It may be that you need more than one van to move so be prepared for a moving company to ask if they can visit your current property to confirm what needs bringing with you.
Property Survey
In order for a mortgage to completely go through you will need to have the property you are buying surveyed and inspected. What happens during a survey is a specialist company will visit the property you are buying and look over it, giving you feedback on the condition of it. Within the survey, they will look at things like does the property has damp, whats the condition of the roof, how stable the property is, etc. From this, you will know if there are any major concerns about the property that may lead you to pull out the deal. When it comes to surveys there are multiple ones that you can take out, depending on your budget, and if you feel like one is needed. The more in-depth the survey, the bigger the cost to you will be.
Insurance
This is more of an ongoing cost when buying a property but one that should be mentioned. Usually, people will pay their insurance yearly or monthly depending on what rate is better. It is important you take out a variety of insurances to protect your property - especially as a property is an investment. Common insurance that a lot of people take out is contents insurance. What this does is cover all the contents within your property should something bad happen to your home, like a fire. The cost of this insurance will vary depending on the value of goods that you have within the home. You can also choose to pay more and protect bigger items like an engagement ring, or a camera.
Running Costs Of The Property
Running a property isn’t cheap so it’s important that you factor in the costs of running one within your initial budget. If you are renting then you will already be paying for things like your water bill, internet provider, gas, and electricity. However, if you are not renting and are planning on buying instead then you may not be used to paying all the running costs a property has. Most of these costs are monthly but some may ask you to pay them upon moving into your property so you will want to have the money ready and available.
Cleaning Costs
If you are moving from a rented apartment then this applies to you. When moving property your landlord will expect you to have left it in the same state as you received it (Apart from some fair wear and tear damage). This will normally require you to hire a professional cleaner to come in and properly go over your property. If not, they may take it out of your deposit and charge you more than if you did it yourself. Professional cleaners aren’t the most expensive cost to move but it’s always worth budgeting for the cost of one so that it doesn’t come as a surprise. Make sure you look around when hiring a cleaner as you want to get the best value for money possible.
Extra Moving Costs To Consider
Do you have a pet that needs to go to the kennels when you move? Or do you have children that need to go to an after school club to make the move easier on you? These are the sorts of costs that all add up that you may not have initially thought of. Having a pet or children around when moving can make the move that extra bit stressful, so it’s always worth seeing if you can find an alternative measure for them - if you don't want to pay for a kennel or babysitter you could always see if your friends or family may be able to help. It is also worth asking your friend and family member who has recently moved if there are any other costs which you may not have thought of.
From the nine points above you can see that there are many things to consider when moving. A lot of these costs you may not have thought were that big initially but they do add up. Our advice is to put a spreadsheet together and plan what you think all these costs could add up to. You can then add another column to your spreadsheet and keep track of what it is actually costing you as you are paying for them, helping you keep track of your spending. If you don’t like a spreadsheet you could use something like Google docs so that you can access the document on your phone or tablet device.
Are there any costs that we have missed? When moving did you manage to avoid any of the above? How was your experience of moving property? Let us know in the comment box below, we would love to hear from you.
