Whether it is your first step on the property ladder or you have outgrown your old home and need a more significant property for your family, buying a new home is one of the most expensive purchases you will ever make. It is easy to overlook so many of the expenses involved in the process of buying and selling our homes. When we buy houses, many of us tend to look at the cost of the house and figure out if we can afford a mortgage. We balance what we expect to sell our home for, with what we will need to pay for the new house. However, the process of buying and selling a home comes with a lot more expenses than that.
The first step is to sit down and work out all the costs involved. This includes any charges you may have pay on your current mortgage. You will need to pay for the new mortgage to be set up and there are likely to be fees involved within the purchasing process too. Get these set out before you commit to any serious situation. Then consider the actual cost of moving. Will you need to hire a company to move your belongings? You should also think about new furniture that you might need for your home too. If you are buying a bigger property, then you might find you don’t have enough furniture to fill it. So there is another cost to factor in.
Decorating costs for both the home you are selling and the home you are buying. Unless you are purchasing a brand new home, then it is unlikely you will find a house that is decorated the exact way you want it. You should consider the yard too. Set yourself a budget for different areas. The cost of selling and buying. Cost of moving. Cost of decorating. Once you have a budget set for all of these areas, then you will be able to work out what the reality is when it comes to making your move. If you find that you aren’t in the position to move just yet, then you can create a timeline. Work through all the areas where you can start saving money to help give you a larger budget to make your move.
It’s imperative not to stretch yourself too much when you are looking to move. Even if you need a larger home to accommodate your lifestyle, if you push the boundaries of your finances too far and something goes wrong, then you could end up with substantial debt and lots of stress.
So, make sure that you have a plan for anything that could change in the future and that even with all the moving costs, there is still some money left in your savings to help you in the event of a crisis. Although it is one of the most stressful events of your life, it is also one of the most beautiful and exciting fresh starts you can get. Moving into your next new home is the beginning of so many new memories.