If you are thinking about moving on from your current home, there’s a lot to be getting on with. Finding a new location, perhaps, and working out your budget. You’ll need to look at local schools if you have a family, and also think about the future in general. Will this be your last move for a couple of decades, or are you planning on moving on again in the short-term?
Whatever your reasons for moving, when it comes to finding a new home, you should always have one thing on your mind: saving money. There are savings to be made across the board, however much your budget is. When you consider you could cut costs by $20,000 or so, it’s worth thinking about. That may not sound a lot against the cost of, say, a $400K house, but the reality is it could be five or more years of mortgage payments that you save.
With this in mind, we thought we would give you some great tips on whittling down the costs of buying your next home. Read on to find out where you can make those savings.
One of the biggest costs of moving house is the move itself. Taxes, fees, lawyers, mortgages all cost a lot, and the amount you pay can escalate even more if you move interstate. Do that, and you can expect to pay anything up to $5,000 – just for hiring a removal firm. So, one of the best ways of making this your last move for a couple of decades. It gives you a much better return on your investment, and the longer you leave it to move on again, the more value you will get from what you paid.
A lot of people are so delighted to get a mortgage that they don’t ask the right questions. This can be an expensive mistake. Home loans are spread over a very long period and involve huge numbers. So, even the slightest increase of ½ a percent can result in a lot more repayment. Therefore, if you want the best deal, you have to go looking for it. Check out an online home loan comparison tool, or hire an independent financial advisor. It could save you a five-figure sum over the course of your mortgage period.
Another way to cut down the costs of your mortgage – and, therefore, your interest payments – is by saving up a good deposit. The more money you can put down, the less your mortgage payments will be each month, and the less interest you will be charged. It’s a simple concept, and one that could save you a lot of money in the long-term.
Your mortgage lender will probably arrange someone to take a look at your prospective property. However, they won’t be all that thorough. If you hire a home inspector, they will look into the new house and inspect every nook and cranny. What they find could help you start negotiations with the seller, and, if there are a lot of issues with the home, drive down the asking price. It isn’t unheard of for properties to go for a five-figure sum less than the original asking price. And, if you can arrange for your own renovation at half the price, then you are on to a winner.
Well, we hope that’s helped you some way. Let us know how you get on with your big move – and try and make it your last move!