When saving for a home, many people regularly forget about the small extras needed when buying. These small extras can add up quickly so before you begin to save you should have a rough estimate of what they are and how much they may cost.
Solicitors Fees and Stamp Duty
This is an important one to start with as you should always have a reliable solicitor acting on your behalf when purchasing a property. This can also be one of the more expensive extras but having a solicitor who is responsive is essential. Many buyers are attracted to low prices some law firms may offer but the experience may leave a lot to be desired. Therefore, it is advised that solicitor’s fees should cost approximately €1500.
Stamp duty is a charge that is put on the transaction of your home. Stamp duty is 1% of the value of your home. For example, if your home cost €300,000 you would need to pay an additional €3000 in stamp duty.
Mortgage Protection Insurance
Mortgage protection insurance is required by lenders when you are drawing down your mortgage. Mortgage protection insurance ensures that if the mortgage holder dies before the loan is fully paid, the debt will be cleared. The premium which is usually paid monthly will depend on your personal circumstances and the value of the mortgage taken out.
Home insurance is another cost you need to bear in mind. It ensures that your new property is covered in the event of damage. However, remember that the cost of home insurance depends on the property type, location, and what you choose to cover.
Unlike the previous items on this list a surveyor is not mandatory. However, it is strongly recommended that you get a survey of your new home to identify any structural issues or hidden problems which could cost you more money in the long run. You should budget around €400-500 for the survey, but this can increase depending on the size of your property. Although it seems like a lot, it will give you peace of mind.
Before you move into your new home remember to get connected to the utilities such as electricity, bins, and gas. Be aware that older homes may have a higher heating cost. These are essentials for any home so make sure you have these budgeted as a long term expense.
Some properties may come with alarms that have been previously installed. Many new builds do not have this included. It’s always worthwhile finding out how much an alarm system will cost. Often, they can reduce the price of your home insurance whilst offering a sense of security in your new home. A good, monitored alarm, will have an install fee but also a monthly fee which includes maintenance at around €30-35 per month.