Moving home is a big expense. Not only have you got the house purchase cost to consider, you also have legal fees, stamp duty, removal fees, redecoration costs, the list goes on. When we moved house a few years ago we tried to keep the costs down as much as we could and I would like to share those tips with you. Read on to find out how to save money when buying a new house.
Get the best deal on your mortgage
The first thing to make sure is that you can afford the property that you want to move into. If you are getting a mortgage, a good play around on a mortgage calculator is a good idea. Mortgage Calculator UK has a great calculator where you can put in how much you are borrowing, the interest rate and the term and it will show you how much your monthly repayments are likely to be. This is a great tool as not only can you use it to get an idea of how much of a mortgage you can afford, but you can also see what an interest rate hike would do to your repayments. If you can't afford higher repayments then make sure you are going for a fixed rate mortgage.
You can also see what a change in term does to your repayments. If you find that you are comfortably off, you could see if you could afford the monthly repayments if you lowered the term. There are benefits to paying off your mortgage quicker, as you will pay less interest and therefore save money. Mortgage Calculator UK shows you a breakdown of how much capital and interest you are paying each year so you can see how much money you can save.
Save money in removal costs
Removal costs can be high but you can save money here. Rope in any friends who might be willing to help or owe you a favour and see if they will help you move boxes and furniture. If you have a friend with a van, or you can hire one yourselves even better as you will be able to move your belongings much quicker. You can pick up packing boxes for free at supermarkets or Costco or quite often people give them away on Facebook sites once they are finished with using them for their own move. This could save you up to £1000 depending upon the area you live and how much stuff that you have to move.
Take advantage of market conditions
It goes without saying to try to take advantage of current market conditions. At the time of writing there is a stamp duty holiday in the UK which could save you thousands of pounds if you bought a new property now. You should also research property prices in the area you are looking to buy. Ideally you don't want to be buying when the market is at it's peak or you are unlikely to make much money on your property within the first few years. It's also worth researching the area you are buying a property in. If it is in an "up and coming" area, with new developments, schools, transport links and shops being built you are more likely to find house prices will increase in the future years, meaning more return on your investment.
Get stuck in to the DIY
A property that is finished to a high standard will command a higher price on the market so if you look for somewhere that needs some work you will be able to negotiate a lower purchase price. If you are handy with decorating and DIY you will be able to do the work to bring the property up to standard yourself and save some money on professional fees too. Being prepared to do some DIY can save you a lot of money when buying the property and you will also add value to the house, meaning you can sell it for more in the future, therefore not only saving you money, but making some as well.
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