Anyone who owns property or is looking to move into a new house knows how expensive it can really be. Not only do you have the cost of the property but there are also other additional costs added on top of that. These additional costs can include the cost of hiring an estate agent, mortgage payments and solicitor fees, and that’s before you even move into the house. It is important that you are sensible and set yourself a budget, in order to monitor how much you are actually spending on your new house. If you are unsure on how to create a budget or don’t know where to start, here is an easy guide to budgeting for a new house.
Track your outgoings
The most important, and obvious, step in setting yourself a budget is to track how much you are spending. You can track your spending on a weekly, fortnightly, or even monthly basis, whatever works easiest for you. Tracking your outgoings involves looking at how much you spend over a certain period of time versus how much income you take in. Writing down exactly what you spend, including any rent, bills, or payments, can be extremely helpful. By doing this you will be able to see which of your costs are essential and which you can cut down on. Every penny counts when you are buying a new house, so knowing if you can cut down on spending in certain is a great first step when it comes to budgeting.
Decide on a mortgage plan
Now that you have figured out what your outgoings are and where you are going to cut back on spending, you will now have a rough idea on how much you can afford to borrow in order to buy your new house. Mortgagescan be extremely helpful when it comes to buying property, but there are a number of costs that you must consider beforehand. These costs are mortgage loan payments, mortgage deposit and mortgage fees. Loan payments involve monthly repayments to your mortgage lender, a mortgage deposit is the initial payment you put towards the cost of the property in order to secure the loan and mortgage fees are a series of upfront payments in return for the lender’s services. You should remember that it is important that you keep on top of all of your mortgage payments.
Calculate the upfront costs
Another great tip for setting yourself a budget for your new home, is calculating what all of the major upfront costs will be. Like previously mentioned, there are a lot of additional costs that go into buying a house, so writing all of these costs down will help you with your budgeting. These additional costs can include house survey costs, conveyancing fees, estate agent fees and broker fees if needed. By doing this you will be able to see how much extra money you will need to set aside for your budget.
Figure out the ongoing costs
Once the sale for your new house has gone through you can still find yourself spending a lot of additional money, especially on the day you are moving in. It is obvious that packing and moving all of your furniture and belongings can be stressful and time consuming. Therefore, hiring someone to help can be a great time saver and can take a lot of the pressure away. Although the expense of hiring a moving van and removal men can be costly depending on how much stuff you have. You also need to consider all of the costs once you move into your house. You will probably have to buy new furniture, appliances, and utensils, as well as paying for all of your new bills, so budgeting for these costs prior to your moving in day can be a great help.
Consult a financial adviser
Although this is not an essential step when buying a house for sale in Miri or anywhere else in Malaysia, it can be helpful to consult a financial adviser. Financial advisers are great for advising you on where to cut back in your spending and can give tips on how to save yourself a little extra money every month. They can be a great help when things get overwhelming or stressful for you, as we all know that trying to save money can be difficult. Plus, it is always good to have someone who you can consult with, which can be extremely helpful when it comes to moving house.
Hopefully from this guide you will be more aware of the steps that go into setting yourself a budget and you’ll be one step closer to buying your new home!