Buying a new house is not as easy as it might seem. Real estate is a harsh industry; it has its own rules and policies, and if you are new to this and don’t have any idea about the costs of buying a house, keep on reading below.
Whether you are buying a house for the first time or selling off your old one, the whole process can take up to months. There are tons of prerequisites to be fulfilled, which include permissions, paperwork, and estate agent fees. If you are ready to go through the process and looking to move into a new place, you better go in prepared.
Below are some reasons people might have to move to a new house.
First House
Have you lived all your life on rent, and finally, the dream of buying your own house is coming true? Most people move out of their parent’s house and start saving for a place of their own if you think you finally reached a financial point where you can afford to buy a new home, which is good for you.
Downsize
People also buy a house once they think their present home is too large. Downsizing can be for several reasons; perhaps your children are all grown up and ready to be on their own. Instead of having empty rooms with only furniture, people prefer to move to a smaller place and put all their belongings in a self storage unit.
Some people also downsize when they are going through a financial crunch. Selling a more prominent place and moving to a small one can leave you with a lot of cash that could be invested elsewhere.
Upsizing
Another reason when people look for a new house to move to is when they need to upsize their current residence. Perhaps you have welcomed a new family member, and your existing rooms are insufficient.
People also like to upsize their house when they go through a significant life milestone such as marriage. Welcoming a new person into your life while living in a single-bedroom apartment might not be appealing to some.
Investment
Real estate is quite a lucrative industry; it mainly yields profits for sellers. And well, this is why most people pursue it as a business and start investing significant chunks of money into it. They buy new houses, flip them and remodel them and sell them off for a marginal profit.
If you are already in the business, you might be familiar with all the costs and expenses, but if you are new and just dabbling into this business, don’t skip the next part.
How Do I Estimate Moving Costs?
Moving to a new place is not cheap by any means, real estate prices have risen along with fuel prices, electricity prices, and automobile prices. Before going all in, make a budget or finance tracking sheet to track all the expenses that might occur.
Following are some factors that might directly influence your cost of moving.
Location
The cost of moving can go significantly up or down depending on where you are moving. The cost of moving goes up when you move to a posh suburb compared to a one-bedroom apartment in the city.
Estate Agent Fees
It is advised to finalise a real estate deal only through a credible real estate agency. They take care of all the documentation, and you don’t have to call public offices to fulfil requirements. Estate agent fees depend on the amount you close the deal on; they mostly take about 1-2%.
The good thing is you only have to pay a commission once your deal is finalised.
Storage Unit Rent
Real estate deals can take up significant time to get finalised. If you are someone who has already sold his previous house and has to wait for a couple of months till your new place is ready, get ready for some additional financial crunch.
Renting a storage unit is one of the most convenient and cost-effective solution for this situation. STORED is an all-inclusive storage company that can be perfect for you since they offer door-to-door storage service. You can store all your domestic and personal belongings at STORED till you are ready to move to your new place.
Conveyancing Fees
In the UK, you have to hire a conveyancer when you have to buy or sell a property. They take care of all the legal matters, including paperwork, buyer correspondence, and dealing with other parties’ lawyers.
Conveyancer fees vary depending on where you want to buy a house, but it mainly estimates around £1000. We recommend hiring a conveyancer through a legal agency to be on the safe side, even if you have to pay a higher price.
Stamp Duty
Stamp duty can be the second highest cost of moving after you have paid all the deposits on your new house. The stamp duty is calculated on the entire value of the home you buy and amounts to 12% of the purchase price.
Great news for first-time buyers; according to the stamp duty policy, you don’t have to pay stamp duty if the house you buy is less than £300,000.
Survey Costs
If you are eyeing a house on the market and considering putting an offer on it, step back and take some time. Before taking the plunge, hire a surveyor to get an idea of the property’s cost.
A survey will help you determine the value of the house, the geographic situation under the house, and check whether the purchase is risk-free or not. Survey costs are around £1000 depending on how much detail and depth you want.
Remodel and Repair Costs
If you are moving to a newly built house, this cost might not be a burden on your back. The cost of repairs goes significantly higher if you are moving to a previously occupied place. You must check for plumbing, heating, and flushing faults beforehand.
If any of these areas need work, you can rent a self-storage unit and put all your domestic belongings in it for some time. You can start the renovations and repair work before moving, so everything gets done as soon as possible.
The Final Word
Moving to a new place opens up doors of new opportunities and possibilities. You get to meet new people and have new experiences. To make the transition to your house smooth and seamless, we advise you to have a financial cushion for unaccounted expenses.
Renting a storage unit will allow you to move in at your place without any pressure or stress. STORED offers its services at extremely affordable charges, you will be amazed at how economical they are!
If you are a first-time buyer and this is your first house, you will have to buy furniture including a bed, dining table, and sofas. You will also have to pay recurring charges of utility bills and insurance. Keeping a tracking sheet and listing all the expenses on paper will help you clearly understand how you are doing financially.
