Oct 14, 2019
The True Cost of Buying a Home, Moving, and Renovations
Brexit has impacted various industries, and it is no surprise that the housing market has had its share as well. Since the 2016 referendum, house prices have fluctuated, and with a no-deal Brexit, the prices could drop by as much 35%. With such uncertainties, the number of home movers seems to be taking a hit as well, with more homeowners opting to stay put instead of dealing with the ever-rising costs. Staying put, however, means that homeowners have to invest in renovation projects to not only make it comfortable but also improve their home's value and appearance.
As Brexit uncertainties continue to loom, homeowners and those looking to buy homes cannot help but wonder just what the true cost of purchasing a home is. This is especially in consideration of not only the upfront costs but also moving and renovation among other costs that surround homeownership. Well, let's take a quick look at some of the notable costs that account to the true cost of buying a home, moving, and renovations.
Buying a home
You might have your head buried working your way to amassing a significant deposit. However, this might surprise you later on as you discover that the deposit is not the only upfront cost that significantly affects your home buying quest. While you may need a deposit amount between 5 to 20% of the purchase price, your mortgage also requires some upfront charges.
For instance, 60% of mortgages require an arrangement fee that could amount anything between £500-2,000. Apart from that, you could be needed to finance the valuation fee as the lender checks the property you intend to purchase and see if it provides enough mortgage security. Valuation fees could range anything between £200 to 600. From there, other upfront cost associated with buying a home includes house survey costs, conveyancing fee, stamp duty, and land registry fee. While the prices might seem insignificant, combined, they amount to a notable amount as you strive to buy a home.
Moving can be inexpensive, and especially if you are going the DIY way. However, some instances call for professional removal companies. Removal companies charges following your belongings and distance. While a DIY move could, however, seem to be the right option to save your hard-earned cash, you should note that your valuables could be damaged. What's more, without professional services, your insurance could decline your claim.
While considering the moving costs, it is worth noting that the move is only complete after you have settled in your new home. As such, if you intend to purchase furniture, carpets, curtains, and other items, you should factor such costs as you weigh the true cost of buying and moving into a new home.
After purchasing a home, you might need to undertake some upgrades for it to fit your lifestyle. You could also be doing it to improve your home's value. In the UK, most valuable additions such as energy-saving solutions, adding a garage, and improving the outdoor space could cost you anywhere between £500-1200. While renovations are not a must, the ongoing costs of owning a home such as home insurance, council tax, and utility bills also count, and an average house could cost over £300000.
While the average price in the UK is £231163, the true cost of buying a home, moving, and renovation needs to factor several concerns. Being a homeowner is appealing. With the market uncertainties due to Brexit, however, you may want to stay put or consider an upgrade. If you understand the true cost and implement an effective plan, you can comfortably buy a home or renovate your current home to match your lifestyle.