Top Money Saving Tips for New Property Buyers
It’s no secret that it’s getting increasingly difficult to get that first step on the property ladder. In fact, property prices all over the country are on the high. At the beginning of the year, it was reported that UK house prices expectations hit a 14-year high. Does this mean you should forget about ever owning a home and console yourself to a life of renting? The truth is, house prices are just like any other market. Very few people can accurately predict where the market is heading over the next few years so don’t lose hope just yet. Here are a few tips on making sure you make the right decision when you commit to buy.
The Hidden Costs of Moving
Unfortunately, buying a property is almost certainly going to cost more than you originally thought. Even the most fastidious of us will overlook something. There’s the mortgage arrangement fee and a valuation fee to pay your lender, stamp duty on any properties over £125,000, survey fees for the real estate agents, and any legal bills to pay if you decide to pay for your own conveyancing.
While prices vary, you should allocate an additional £3,000 of your budget here as well as work out the cost of your stamp duty. Be aware that many people will pay for surveys on deals that don’t materialise on some aspects, like the mortgage arrangement fee, which can sometimes be non-refundable, even if the purchase falls through. Even after all this, there’s the possibility of removal fees, renovations, and new furnishings for your home.
Ways You Can Save Money
Fortunately, there are a few ways you can cut down on some of the costs of moving. When you move in you’ll have to switch a lot of your energy and service providers and, while this will seem like a hassle, you’ll be surprised at how much lower your bills could become. Companies hold on to their best deals to try and tempt new customers in so you’ll be able to take advantage of cheap gas, electric, and broadband deals. Don’t forget to check out cashback websites to make even more savings.
If your new home has a spare room you could also consider renting it out. This could prove to be a great money-maker as the rent-a-room scheme means you won’t have to pay any tax on the first £4,250 you make each year. If you aren’t interested in entertaining a lodger full-time, there’s also the option of renting your room out to travellers looking for a place to stay. You’ll be able to set the nightly cost and it will give you more flexibility for when you’re comfortable letting someone stay or just when you need some extra cash.
There’s a doom of gloom being written about the property market, and while it’s important to be realistic in the current climate, don’t let it get you down when you start thinking about your future. Remember to follow these tips when you’re out property hunting so you can make the most of the advantages of being a homeowner.