How To Escape Hidden Fees On New Properties
The kind of investments we are talking about here are huge – tens of thousands of pounds, if not hundreds of thousands. The fact that there could be other hidden charges that could drive these costs even higher is enough to drive an investor berserk.
SO, what is a ‘money loving and capital saving’ investor to do to avoid these hidden charges? Well, the very first thing you can do is educate yourself about them. How can you successfully avoid something with which you are not fully conversant? With that in mind, here are some of the heftiest hidden charges that tend to creep into your house buying costs.
Although this is not exactly a hidden cost, most people tend to forget to account for it. Since it went up, this amount is not something to trifle with at all. Honestly, though, this is not a cost you can actually avoid since it is compulsory and required by law. So, in this case, this one you simply must pay.
Maintenance and repair costs
Most homebuyers tend to play it sly and forego the home inspection bit of the purchase. Yes, not paying those few hundred quid for the inspection is one way to avoid that hidden fee, but at what cost? In property, much like with every other form of investment, you have to do a cost-benefit analysis. Is that £300 saved by not paying for the inspection worth the £4,000 you will incur in unforeseen and actually avoidable repairs that the inspection could have saved you?
Logic dictates that it is not. Granted, there is a good chance that the inspection might not turn up any red flags, but at the very least, it will give you peace of mind. Plus the inspector will give you a viable course of action when it comes to home maintenance. With an efficient, workable plan in place, you can save lots of money on trial and error repairs and maintenance in the future.
Estate agent fees
These fees are not exactly hidden, but people tend to forget them and act surprised later. Even though there is a surefire way to avoid these fees, doing so is not exactly advisable. Estate agents bring a certain level of streamlined to the entire home buying process. They know the right sellers, have access to the right homes and can get you even better prices. You could, absolutely, go it on your own and save on the associate agent fees, but that would mean having to do all the legwork yourself and taking a massive risk as well as enduring a very steep, and rather expensive learning curve.
It is up to you to decide what concessions you want to make. Estate agent fees, maintenance fees and even different types of taxes can all be avoided. It all comes down to the cost-benefit analysis we talked about earlier.