Savings Won’t Save You When These Three Home Ownership Costs Crop Up

Are you saving money for a deposit? You aren’t alone. As house prices skyrocket, a decent deposit is harder than ever to come by. Rather than flying the nest in our early twenties, many of us find scrape and save into our late thirties.

It’s hardly what any of us want for our later lives, and isn’t exactly the way to meet a lady and settle down. Especially not when you consider that, for previous generations, it wasn’t unusual to have home and family by 25. Of course, society has shifted in more ways than one, and the majority of us make big life decisions later. But, it can still be a hard pill to swallow when mummy washes your socks into your thirties. Which is why most of us set our sights on a deposit amount, and make all allowances to get it.

The bad news is there are some hidden costs to homeownership which you may not have factored. Not to burst your bubble, we’re going to look at what they are, and a few possible ways to get around them.

Furniture costs

This may seem obvious, but it’s surprising how many of us fail to factor how much furnishing a home is going to cost. In our haste to get into the place, we focus so much on deposit that we fail to leave any spare. Though it is possible to live with no furnishings, it’s not a goal to aspire to. Plus, once you’re making mortgage payments, it’ll be harder to afford this expense. Instead, it’s worth saving another few thousand for the cause. It’s also useful to buy anything possible before the event. While big things, such as sofas, aren’t practical beforehand, small kitchen pieces and such are easy to store.

Stamp duty

As a first time buyer, terms such as stamp duty may sound like a different language. But, this is something you need to get your head around. This is a fee you pay to cover legal and documentation costs during the buying process. If you’re looking to buy, you may already know that changes to legislation mean first time buyers don’t pay stamp duty on properties less than £300,000. But, there is still a charge for anyone paying above that amount. It can add up to around 10% on expensive properties. So, it’s worth heading to something like this stamp duty first time buyers 2017 calculator to estimate how much you might pay. If the sum is too large to cope with, consider a smaller mortgage for the time being, or wait a little longer.


The chances are that there will be some upkeep to do in your house before or straight after you move in. This can range anywhere from a few hundred, to hundreds of thousands. Make sure to do a thorough check of any work which needs doing before agreeing to a sale. And, again, it’s worth leaving yourself a little extra to play with for this eventuality.



Leave a Reply