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The Hidden Costs of Buying and Owning Property

The first foray into the world of property ownership can be something of a struggle. There are a lot of associated costs that many fail to realise are in place until it is too late. Of course, if you are keen to embark on your journey into home ownership, you should not be deterred. But, there are some costs that you need to know about.

Buying property can be expensive. What is more, the ongoing costs can run into thousands. Before you decide to take out a mortgage, you need to be armed with all the facts. After all, you don’t want to make a costly mistake. The key is to be armed with all of the relevant financial knowledge. This can save you a lot of heartache in the future.

Here are some of the hidden associated costs of buying and owning property. As the boy scouts say, it’s time to be prepared.

Mortgage

Raising the money for the initial deposit and mortgage can be costly. You are going to need at least 15% of the total value of the house before you can buy it. For the best interest deals and rates on the market, a pricey 40% of the total cost of the home is needed. This can be an expensive venture. But, if you want to save money for the long term, opting for the 40% deposit route is often the best course of action to take.

5474168441_70b2f46944_zSource: Images Money

Stamp Duty

Stamp duty is predominantly used in the UK. So, if you see a 7 bedroom detached house for sale in Broxbourne, you may have to be aware that the stamp duty would be expensive. An additional 7% is often added to the value of the property when a consumer buys it. Be prepared for this added extra. The bigger the mortgage value, the higher the stamp duty.

Surveys and Valuations

Surveys and valuations are a legal requirement in the UK property market. But, even though you have to have them, don’t think that these come cheap. Even for a basic valuation and survey you are looking in the region of £1000 for this legal work to be carried out. Make sure that you have coffers available to pay for this.

Mortgage Arrangement Fees

Mortgage arrangement fees are vital to ensuring that you have a mortgage that is fit for purpose. But, again, these can be costly. Many providers will want a cut of the profit for finding you a property and the best mortgage deal. This can be as much as 1% of the total value of the property. This is expensive but sadly unavoidable.

House Removals

So, by the time that you are ready to move and have already parted with a bucket load of money, it’s time to consider your house removal company fees. Yes, even moving your sofa into your new home is going to cost you. On average, a house removal can cost in the region of £300 to £500. If you want to save cash, it may be worth getting your mates to help you out with the big move.

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Published on: November 7, 2014

Filled Under: DIY & Home

Views: 3474

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