Buying your first home is an exciting milestone. Most people spend months, or even years, saving for a deposit and planning for their mortgage repayments. With so much focus on these major financial hurdles, it is easy to lose sight of the other expenses that come with property ownership. These additional costs can add up quickly, turning a carefully planned budget upside down.
From legal fees to unexpected repairs, a wide range of expenses can arise before and after you get the keys. A clear picture of these potential costs is essential for a smooth transition into your new home. Being prepared for more than just the purchase price helps you manage your finances without unnecessary stress.
Costs that arise before you move in
Once your offer on a property is accepted, several professional services are needed to finalise the sale. These fees are not part of the property’s price and must be paid separately.
A structural survey is highly recommended, especially for older properties. A surveyor inspects the home for issues like damp, subsidence, or problems with the roof. The cost of this report can vary, but it provides valuable information that could save you from much larger expenses in the future. Your mortgage lender will also require a valuation survey to confirm the property is worth the amount you plan to borrow. This is a separate assessment with its own fee.
You will need a solicitor to handle the legal side of the property transfer, a process known as conveyancing. Legal fees cover property searches, contract preparation, and registering the property in your name. Stamp duty is another significant expense, which is a tax paid on the property’s value. This cost is often forgotten in initial calculations but can amount to a substantial sum that must be paid from your own funds.
Immediate expenses upon getting the keys
The day you move in marks the beginning of a new set of costs. The most obvious is the expense of moving your belongings. This might involve hiring a professional moving company or renting a van to do it yourself. Both options come with costs that should be included in your budget.
Once the house is empty, you may notice small issues that were not apparent before. These could be minor repairs, such as fixing a leaky tap, or cosmetic updates like a fresh coat of paint. It is also a good idea to change the locks as a basic security precaution. Setting up utilities like electricity, gas, and internet can sometimes involve connection fees, which add to your initial outlay.
The ongoing costs of owning a home
Beyond the one-off moving expenses, homeownership comes with regular financial commitments that go further than your monthly mortgage payment. These should be factored into your long-term budget to avoid surprises.
- Property Tax: Homeowners are required to pay an annual Local Property Tax (LPT). This is typically based on the market value of your home.
- Home Insurance: Lenders require you to have home insurance to protect their investment against risks like fire or flood. This is an annual expense that varies based on the property’s size, location, and construction.
- Maintenance and Repairs: Unlike renting, all maintenance is now your responsibility. Experts often suggest setting aside a percentage of the home’s value each year for upkeep. This fund can cover everything from annual boiler servicing to unexpected roof repairs.
- Management Fees: If you buy an apartment or a house in a managed estate, you will likely have to pay annual service charges. These fees cover the maintenance of common areas, such as gardens, lifts, and refuse collection.
Furnishing and decorating your new space
Moving into a new home often means needing new furniture, appliances, and decorations. Even if you bring items from your previous residence, they might not fit or suit the new space. The cost of furnishing an entire house can be substantial, particularly for first-time buyers who may not own many large items.
Window coverings like curtains and blinds are a common oversight but can be a significant expense, especially for non-standard window sizes. White goods such as refrigerators, washing machines, and ovens are other big-ticket items that you may need to purchase. These costs can quickly accumulate, so it is wise to create a separate budget for them.
For example, imagine a couple moves into their first house having budgeted carefully for the deposit and legal fees. They planned to buy a new sofa but soon realised that the large, modern windows in their new living room required custom-made blinds. This single, unforeseen purchase added a considerable amount to their expenses, forcing them to postpone buying other essential items. It shows how quickly overlooked details can impact a new homeowner’s finances.
Building a financial safety net
The transition to homeownership involves navigating a variety of expected and unexpected costs. Planning for expenses beyond the headline purchase price is vital for maintaining financial stability. Creating a detailed budget that accounts for legal fees, repairs, ongoing maintenance, and furnishing will help you feel more in control.
Setting up a dedicated savings fund for home-related expenses provides a crucial buffer. This financial cushion allows you to handle surprise costs without derailing your budget or resorting to high-interest credit. Being prepared for these eventualities is a key part of responsible homeownership.
Protecting your new property and its contents is a fundamental priority. Ensuring you have the right cover in place gives you peace of mind as you settle into your new life. You can find out more from this 123.ie resource for new homeowners.
