Can You Afford To Move Home?

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Before you can take the decision to move home, you need to be sure that you can afford it. There are lots of costs that you need to factor in when taking the decision to move – some of which can often get overlooked. Here are some of the biggest costs to consider.

The upfront costs

Upfront costs can vary depending on whether you’re planning to rent or buy and whether you’re selling a home.

If you’re moving into a rented home, costs to consider include the deposit (usually equal to around three months rent) and any agency fees that you may have if you decide to use an agency. You may be able to pay for some of these costs using money released from a previous deposit if you’re already renting.

If you’re buying a home, there are numerous costs to consider. The down payment is the biggest cost that many buyers focus on – first-time buyers can spend years saving up for this, while current property owners tend to use any equity from their home. Other costs that get overlooked when buying a home are home inspection fees, appraisal fees, solicitor fees and extra mortgage application fees. Thi guide at opendoor.com delves deeper into all the costs of buying a home. 

Meanwhile, if you’re selling a home you may have to consider stamp duty and the cost of marketing your property. Using an estate agent is a big expense, but far more efficient than marketing your property yourself. Shop around to find an estate agent that you trust and make sure to enquire about fees upfront.

The cost of moving your possessions

When it comes to the actual move, you may have to consider the added costs of moving your possessions. This is likely to depend on how many possessions you plan to move and over what distance.

For small moves you may be able to get away with hiring a van and possibly roping together some friends/family to help with the move. Van hire costs can vary, so it’s worth shopping around.

If you’re moving more than an apartment’s worth of belongings or moving over a significant distance, you may want to look into moving companies as found at onthegomoving.com. Some moving companies are able to also offer storage if you need to temporarily keep possessions somewhere. There are also international moving companies for moving to another country.

The living costs of your new home

If you’re planning to upsize, a new home could come with added living costs such as high energy bills and higher mortgage repayments. Make sure that you’re ready to take on these added continuous payments. If you’re downsizing, this may not be such an issue.

Can you afford it?

To work out if you can afford the move it’s worth thoroughly assessing your finances. Work out how much money you have access to now, how much all of the moving costs are likely to come to and how much you can afford to pay in the long run. You don’t want to end up running out of money halfway through the moving process and having to beg, steal and borrow to avoid pulling out. You also don’t want to move into your new home and have no money to pay the bills. Do the math so that you’re financially ready as you can be.

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