Hidden costs are never a good surprise. Buying anything should have transparent costs and no more so than buying your biggest purchase; a home.
If you are ever expecting something in life to be expensive, then it is buying a home. But in truth, buying a home can end up costing more than you intended due to hidden costs.
Hidden costs can be over ten per cent of the home purchase price. These need to be included and budgeted for when applying for a mortgage. But what are the hidden costs? Here are some of the things for which you may need to budget.
Stamp Duty or Local Tax
Depending on where you live, and the cost of the property that you’re buying, you could have stamp duty or other taxes to pay.
It could be in the region of thousands of extra dollars as it is related to the price of the property that you’re buying. So checking on the thresholds before you buy is a good idea so you know what to expect.
Legal fees, such as conveyancing, are part of the legal process of buying a house. In many cases, this is dependant on the cost of the house that you are buying.
Solicitors fees are going to be quite a lot too, and they will need to be involved in the process. So just another thing to bear in mind.
Unless you are buying an old home that has some very obvious improvements required, you will likely need to have a survey. The home you are thinking of buying could have some hidden issues that you can’t detect by yourself.
When you buy a home, you want to go in with your eyes open, knowing all of the issues and revealing potentially hidden costs. This is an important step. It could mean the difference between purchasing a house knowing the improvements required or having a nasty surprise when your dream home becomes a nightmare.
Unless you’re moving to the house next door, you’re going to need some help with moving everything out of your home and into the new one. But this is something that, you guessed it, is going to cost you!
So it is a good idea to look up some removalists reviews before deciding who to choose. Then you can look out for a removals company that is going to be value for money. You could also do it yourself if you’ve got plenty of family or friends that are happy to help.
We all know that a mortgage is a kind of loan. So we do all expect to be paying slightly more over time. However, you need to be clear on just how much more you will be paying.
You also need to check if your mortgage broker charges you any extra fees for setting up the mortgage. Sometimes they charge around 1% which doesn’t sound like much. But for a large mortgage, it does all add up!