Three costs associated with buying your first house
Three costs associated with buying your first house
Buying your first home is an exciting time. Aside from being a life milestone, it’s also an opportunity to create a space that is truly your own, reflecting your tastes and interests in a way that isn’t always possible in a rental property. It also provides you with a feeling of security and putting down roots in the local community.
As many of us know, this big step doesn’t come cheap. In fact, buying a house is probably one of the largest purchases you’ll make in your lifetime. Aside from the cost of the property, there are other factors that you need to consider before taking the plunge into home ownership – let’s look at three in this post.
Conveyancing fees
When you buy a house, it’s essential that you get the proper paperwork completed so that it’s legally yours, with the help of a solicitor. They will also be responsible for handling the monetary side of your purchase. Any mistakes made at this stage can lead to issues in the future, which will only ramp up the costs further, so it’s important to invest in a good professional early on in the process. Make sure that you read reviews online and compare costs before committing. You can also ask your real estate agent for recommendations, but be aware that they may work on a referral basis with certain law firms.
In New Zealand, conveyancing fees start from around $1000, but they can be higher depending on the complexity of the purchase.
Survey report fees
Once you’ve had an offer accepted on your dream property, . However, it’s important to make sure that all the necessary checks are carried out and that you’re happy with the you probably want to get the keys as quickly as possibleresults before you move forward. Some banks also require these checks as a condition of lending you your mortgage amount, so make sure you’re clear on that from the beginning.
Reports commonly look at factors such as flood risk, building consent, drainage and pest issues, as well as flagging any concerns that might be unusual and only apply to that property, such as it being in a protected area. By going ahead with the sale after receiving the reports, you’re confirming that you’re happy with the results. If you move in and something becomes an issue that was flagged on the report, this isn’t the seller’s problem.
Moving logistics
Even once the paperwork is signed, don’t forget to account for the cost of actually moving your things into your new home. As a first time buyer, you may not have that much stuff, but chances are you’ve still got some bulky items such as a bed or sofa that will require you to hire a van, even if you don’t choose to use professional movers.
When moving from a rental, it’s also not always possible to tie up your moving out date with your moving in date. If this is the case, you’ll need to get a quote for storage. Or, if your rental leave date is later than your home move-in date, remember that you’ll probably have to pay rent on your old property as well as the mortgage on your new one for the first month.
Create a budget
Moving house is a stressful process, but don’t let the extra costs put you off – they are part and parcel of moving into a new property, and beginning the next stage of your life. Make sure you’ve done your research and planned how you’ll pay for things so that you’re confident you can afford everything before you fall in love with a property.
By Claire Monroe
If you are thinking of Selling click here for a FREE PROPERTY APPRAISAL
