But while you can’t do anything about housing prices, there are some practical steps you can take to reduce the overall cost when moving into a new home.
If you’re someone who finds their dream home slightly out of reach, or you just need a little extra help getting on the ladder, following the steps below could make all the difference.
Make Sure You Don’t Overpay
The first, and most obvious way you can save money, is by ensuring you don’t overpay on your new property. Take house prices as a general guide and do your best to understand the market before committing to an offer. A good way to do this is by viewing multiple properties, this allows you to compare properties and valuations.
When looking in a certain location, try to keep on top of sales in that area to understand the local market. There are also desktop valuation tools online that can give you an instant figure for the value of a property.
The final tactic is negotiation. Once you have a figure in mind that you believe a property is worth, try to negotiate the seller down below this, and be prepared to walk away from the deal if they are unwilling to accept an offer below your personal valuation.
What may seem like a small saving can amount to thousands of dollars when it comes to property. For instance, saving 1% on a $300,000 home would equate to $3,000.
Consider A 95% Mortgage With A 5% Deposit
With it becoming harder to save a house deposit, many homeowners are choosing to take advantage of 95% mortgages. This can drastically reduce upfront costs, although it will mean higher monthly repayments.
For many aspiring homeowners, the deposit is the sticking point so depending on your individual circumstances, shaving money off your initial deposit and adding it to your mortgage is a worthwhile trade-off.
Be Clever With Furnishings
Once you’ve bought a new home, you’ll need to furnish it, and this is one area where it’s really easy to overspend. There are a few ways you can reduce costs when it comes to furnishing property, the first is to take your time when furnishing and view it as an ongoing process.
It’s fine to have a spare room that’s used as storage for the next 12 months if it allows you to spread the costs of decorating your new home.
For those rooms that do need attention as you move in, it may be worth asking around family and friends to see if there’s any spare items that can be donated or sold to you for discounted prices. Another option is to source items from thrift stores or from second-hand online marketplaces like Vinted.
Save Money On Your Surveyor
You’ll need a conveyancer or surveyor to complete your sale, and this is often an unaccounted for cost. But it’s also an area where you can save money. There’s no fixed price for a surveyor, so it’s worth asking around before committing to a certain surveyor.
It’s also worth pointing out that more expensive surveyors often charge higher rates due to being able to offer a higher level of expertise. However, cheaper rates don’t necessarily mean poor service. Try to find a surveyor that saves you money without cutting corners if you are working to a tight budget.
Image Credit: lower the cost of buying a new home by envato.com
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