Buying your first home is an exciting time! Whilst you might have figured out how much you can afford to spend on a property and have factored in the monthly mortgage repayments, there are some costs that you might not have considered. It’s also important to remember that there could be some unexpected costs. Let’s take a look at some of the common ones after the purchase of a property.
Property Tax
Stamp duty and land taxes should be taken into account with the overall purchase price of your chosen property and will become payable when the property sale is finalised. Stamp duty depends on a number of factors including whether this is your first property purchase and your immigration status. Stamp duty is between 0 – 17% of the overall purchase price. If you are going to be living in the property you purchased, you will also be liable for a yearly council tax bill, if you are renting out your property, this becomes the responsibility of your tenants.
Insurance
When you take out a mortgage on a property, you will need to take out building insurance which will cover the cost against any damage which occurs to the property. Many homeowners also choose to take out a life insurance or mortgage protection policy which cover them if they have an accident or fall ill and are unable to work to pay their mortgage.
Emergency Maintenance Costs
As much as you love your new home, there will be annual maintenance costs to keep the property in a liveable condition, this amount will depend on the age, location and size of your property but as a general rule, you should aim to save 1% of the value of your home per year to be used for basic home maintenance. Alongside this, you should also remember a maintenance emergency can strike at any time including structural damage, boiler breakdowns, plumbing and electrical emergencies.
Furnishing and Redecorating
Depending on the state your property was in when you bought it, you might need to completely furnish and redecorate it to bring it up to your acceptable living standards. Even if the property is in good living condition, over time you might need to replace appliances if they break down or redecorate to keep the property looking the way you want it.
We hope this blog provided you with some useful information and has helped you as you consider buying a property or move forward with the property buying process. If you need some more support, our team are on hand to advise you. Contact us here.