Buying your first home is a big deal. Before you take your initial, tentative step onto the property ladder, you need to think long and hard about all the financial implications. Of course, you’ll need to find enough money for your deposit, and then there are your monthly mortgage payments to consider. There are also property taxes, solicitors’ fees and removal costs to take into account. However, in addition to these costs there are a number of less obvious expenses to factor into your financial planning.
If you’re renting a place right now, you might already be shelling out for contents insurance. However, when you take on the responsibility of your very own property, things change. From the day you exchange contracts on your new home, you will need to make sure you have suitable buildings cover in place. Failing to take out this insurance simply isn’t an option. Your mortgage provider will require you to have it. To ensure you’re not overpaying for this cover, you can turn to specialist brokers such as Chill Insurance. They will search the market for you, turning up the most competitive deals.
It’s worth looking into home insurance before you commit to buying a property. The premium you pay will be affected by factors such as the location and size of your house, and you should be confident that you can cover this additional cost.
You must also budget carefully for any improvements you’ll need to make to your new home when you first move in. For example, will you need to buy extra furniture, fixtures and fittings, and does the property require redecoration? If the answer to these questions is ‘yes’, you’ll have to make sure you have enough money left to cover these costs.
Repairs and maintenance
Another crucial issue to consider is repairs and maintenance. When you own a property, you can’t simply turn to a landlord for help when appliances break, your roof starts to leak or your boiler packs in. Ideally, you should leave a safety margin of savings to help you fix problems like these. It’s also wise to ensure you’re able to put some money aside each month to add to these savings. After all, you never know when things will go wrong with your home, and the costs can quickly mount up if they do.
By thinking long and hard about your finances before you commit to buying a home, you should be able to avoid any nasty surprises further down the line.