Budgeting All Costs When Buying Your Property


Budgeting All Costs When Buying Your Property

Many people end up making a great deal of money through strategic property investments. However, even experienced investors can forget or overlook many hidden costs. By learning about the different fees you may incur, you can increase your bottom line when buying property.

 

Fees -


There are a lot of miscellaneous fees involved in purchasing a property; loan application fees are a prime example of this. Right from the start, you have to spend money in order to be considered for most mortgages such as the valuation fee for the surveyor.. Although the fees might be minimal, they still must be taken into account as an expense that takes away from your bottom line. There will also be solicitor and conveyancing fees to take into consideration; both of these are generally inescapable parts of purchasing property, and will need to be taken account when budgeting to buy your first  home. If you are buying a leasehold flat then you will need to take into account  monthly service charges.  

Surveys -

 

Surveys are critical when purchasing a new property and can uncover major problems that would cost you even more money down the line;  It is worth considering whether to  have a basic survey or a more in depth one if the property is very old so that you don’t have any nasty expensive surprises after purchase..   

Insurance -

 

You will need to consider building’s and contents insurance once you have bought the property.  If you buy a flat, the buildings insurance is probably included in the service charge.  Make sure the amount of cover is sufficient for re-building should anything ever happen to  your home.  

Other Miscellaneous Costs -

 

Once the purchase is finalised, there are still a few more costs to be considered. Moving expenses absolutely must be included in the final cost of buying property; in some cases, they can be considerable. Getting the home ready to live in will also require utilities connections which will cut even further into your bottom line. By being aware of the extra costs of buying property, you can make a far more strategic – and informed – decision

Article by:- David S Judge