Buying a home is not like buying a sweater that you saw in a shopping mall. It is certainly the biggest investment in your life. Deciding on the best solution when buying a house is at the same time the most beautiful but also the most stressful thing at the moment. It is certainly easier for people who already have experience but if you are new to this then you need to know that you will surely encounter problems like first how to choose the ideal house, then where to locate it and then the first-time home buyer costs.
You must know from the beginning that you will encounter unexpected circumstances and very possibly high costs when buying a house. The first of the problems is how do I move things from the old apartment to the new one? The best solution is to hire one of the companies that deal with relocations, but also all the other things that go with it. Moving can be expensive and arduous, but for example, a good removal company Hong Kong can be very helpful and will make your moving easier.
An important step before you face first-time home buyer costs
Since you will surely encounter first-time home buyer costs you should not get upset about other things. That means that everything like packing, storage, moving can do someone else but you. Packing things is a boring and confusing job. Especially if you want your things and furniture to be safe, locked, and in a dry place while moving. You can solve that by renting the storage for short period, for example, short term storage Hong Kong, until you “get on your feet” and make yourself comfortable in your new home.
When you have nicely put away things and furniture that you do not need so much, you can focus on the following sudden things that can take money out of your pocket if you are facing first-time home buyer costs.
7 first-time home buyer costs you can face:
- Home inspection
- Property tax
- Home repairs
- Home appliances and furniture
1. The first-time home buyer costs – Deposit
When you move out for the first time, you will learn about deposits. Deposit, or “earnest money”, represents the amount of money that is put down before closing on a house. This is done to ensure both the buyer and the seller. It’s typically around 1% – 3% of the sale price. What this cost brings you is security. By making a deposit, you ensure that the house will be sold to you. If the process of buying goes smoothly, the earnest money is applied to your down payment or closing costs. Also, in case of any complications such as failed inspection money will be given back to you. This is a very important item when buying a house and one of the first expenses that await you.
2. Home inspection
In addition to existing unwanted moving expenses, it would not be bad to hire a home inspector, so buying a home would not be a real failure. It would usually be a good idea to check every house for sale through a home inspection. This means that you, as a buyer, contact the competent inspection before the purchase. This is done to know the condition of the house. Once the inspection determines the condition, you can cancel the purchase if the house requires a large sum of money that would go to repairs. The inspector’s estimate alone will cost you between $ 300 and $ 500. Home inspections are not required but could provide invaluable peace of mind, especially for first-time homebuyers.
Another guaranteed first-time home buyer cost is insurance. This cost means safety when the times are bad. Insurance is covering the costs of repairs due to accidents. This means that your home, but also furniture, things, clothes are subject to a refund due to fire, flood, storm, theft, earthquake, vandalism, or falling trees on your house. Garages, sheds, and fences are also covered, as well as the cost of replacing items such as pipes, cables, and drains.
4. Property Tax – mandatory first time home buyer cost
Don’t forget to consider property taxes when you are facing first-time home buyer costs. Property taxes can be high in some areas so it is important to take this very seriously when you are buying a house. The seller should pay the tax from the beginning of the tax year to the closing date. And the buyer should pay after that day. That way no one will be harmed, and will only pay taxes for the period of owning the house.
5. Utility costs
In addition to property taxes, utilities are also something you will encounter if you are a first-time homebuyer. Utilities are usually not overly expensive, but in addition to everything that awaits you in the beginning, they can still be an aggravating circumstance. Utilities are easy to set up and they usually include:
- elevator maintenance
- garbage collection
- building maintenance
6. Home repairs
Even when the house passes home inspection, there will always be something in the new home that needs to be repaired. Or you simply want to change something, make it more beautiful and functional. While this is something that can wait, there are things you should pay attention to and set aside some money for. These include things like painting, repairing gutters, floors, installing additional plugs. Also, you will maybe want to repair a fence, porch or plant some additional trees in the backyard.
7. Home appliances and furniture – arbitrary first time home buyer cost
When you have fine-tuned the money for the essential expenses that await you, you are left with only finesse. It would be too stressful to set aside money for all of the above without doing something for yourself. This will allow your home to be comfortable and beautiful. Some of the home appliances that you might have to get because they are not included in the interior of the apartment are air conditioning, shower cabin, built-in oven and hob, washing and drying machines, as well as a dishwasher. Also, if some of the furniture you bring from your old apartment is worn out and has to be replaced, it will create an additional cost for you. You can always look at furniture at sales, fairs, or out of season, to save some money.
When you are buying your first house, you will go through many ups and downs. This is one of the big steps in your life and you must allocate money properly from the start. First-time home buyer costs can be very laborious and difficult. We hope that with our tips you will avoid all unexpected waste of money! Good luck!