Here’s How Much It Really Costs to Get on the Property Ladder
Nothing beats the feeling of walking through the door of your dream home, but buying a house is not only stressful, it's expensive too. Especially when you factor in those hidden fees and costs that you just don't think about when house hunting for the first time.
Of course, there’s the deposit, mortgage payments and estate agents fees to think about, but what about finding out the boiler is broken once you move in? Or realising you need to pay just shy of £1,000 for a homebuyer’s report? Once you add moving day costs, like hiring a van and buying sturdy cardboard boxes, it really does all add up.
So, before you get carried away putting in an offer on a home that could leave you out of pocket, here are five hidden costs first-time buyers should be aware of. And, if you want to find out exactly how much your new home could cost you, use Totally Money’s new interactive home buying tool.
Stamp duty land tax
Stamp duty isn’t a problem for everyone – homes under £125,000 won’t incur it, and prices up to £500,000 for first-time buyers will be reduced or negated. But if you’re buying a more expensive home, or not your first, it can cost tens of thousands of pounds.
Fixing leaks, cracks and rewiring electrics
Small faults with a property are easy to overlook when you’re buying it. But once you’re in, it’s natural to want to get the place just right – but with average costs of £180 for fixing leaks and cracks, and as much as £2,750 for rewiring electrics, it can be a real shock.
Even if you don’t want a full building survey, a homebuyer’s report can identify a lot of potential issues with a property – but it’ll still put you out a massive £786 on average.
When buying your home with the help of a solicitor, their costs can be between £850 – £1,500, which is a sizeable fee to pay as you enter your new property.
Moving day costs
Boxes, a removals company to help you pack up and shift your stuff, taking a day off work unpaid to wait for the broadband to be installed, moving day costs can often the most hidden of all. Plan ahead by asking family and friends to help you move, or buying boxes in bulk, and you could save yourself a small fortune.
Joe Gardiner, TotallyMoney’s Head of Brand and Communications, comments: “Buying your first home is an exciting step in your life, but it’s also an expensive one – and often more expensive than you initially estimate. We conducted this research to help first-time buyers make sure they are aware of all potential costs before they have to pay them.”