What’s the full cost of home ownership?

September 29, 2015

How to move house with a toddler

What’s the full cost of home ownership? We moved house nearly two year ago now and would say that there are probably more expenses than you first imagined, buying a home can be a lot more expensive than you think. Read this guest post to find out more:

Hidden Costs

Hidden costs can amount to more than 10 percent of the total bill. If you don’t take into account these hidden costs, the first couple of years of owning a home can be a time of belt tightening. Buying your home is the biggest expense, but there are many other costs that you will need to budget for. At the top end of the market stamp duty can add many thousands of pounds, and to the cost of buying a home.

Conveyancing

This is the legal process which covers various search fees and registering with the Land Registry. An online conveyance is cheaper than a solicitor who generally charges more.

Surveys and Valuations

These are often essential to secure a mortgage and can be very expensive. Fees range from a few hundred to over a thousand Pounds.

Mortgage Arrangement Fees

Some mortgage charge arrangement fees. This could be as much as 1 percent of the mortgage. This expense may be demanded upfront or added to the mortgage.

What’s the Full Cost of Home Ownership?

Mortgage Indemnity Fees

A lender might charge a fee for insurance, in case you cannot pay back the loan.

Mortgage Broker Fees

This is sometimes applicable if you have used a mortgage broker. Not all brokers make a charge.

Estate Agent Fees

If you are selling at the same time to fund your new home, you’ll to take into account these fees

Removals

Unless this is your first home no doubt you’ll need to add the cost of removal. Cost can be kept down by hiring a self drive van rather than employing professional removers.

Furniture and White Goods

If you are buying your first home, you’ll be overwhelmed with how much you’ll need to buy in the way of furniture, beds, washing machines and other kitchen equipment. The list is never ending. If you’re on a budget, it can be quite fun to look around and buy second hand.

Redecorating

You may be able to put up with the decor in your new home, but most people want to make their mark and redecorate which adds to the initial costs of owning a home.

What’s the Full Cost of Home Ownership?

Now you have bought your home, furnished it and paid off all those bills, you still cannot rest on your laurels. There are all those other things to worry about: Water, gas and electricity bills will start to arrive. Council tax can range from a couple of hundred pounds a year to several thousand for bigger houses.

Buildings and Contents Insurance

Building and contents insurance is a must and building insurance is often a condition of your mortgage. Cost can be anywhere between a few hundred and thousands of pounds a year.

Ground Rent and Service Charges

If you have bought an apartment or a flat these charges usually apply annually. These charges can vary wildly and can be reassessed each year to meet with inflation and other costs.

Residents’ Parking

In bigger cities like London where you are forced to park on the street, often you’ll need a residence permit to park. These attract an annual fee and you’ll need extra permits for your visitors.

This article is not exhaustive, but we hope it is food for thought as there are many expenses in owning a home that aren’t immediately apparent when house hunting. You can find out more at Prestige International UK.

P.S. our house renovation project and tips on nesting.

Collaborative post.

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