Beware of unforeseen costs while buying property in UK, analysts say

According money.co.uk, the cost of buying a property in the United Kingdom may be £30,600 more than you think because of unforeseen costs, Propertywire says.

The study found that 21% of home buyers paid more for their homes than they planned. In average, the budget gap has reached almost £23,000 per buyer.

It is worth noting that 21% of home buyers spend over £8,000 on their property in the first year after purchase but 23% do not take into account these expenses. According to money.co.uk, unforeseen costs could add up to £30,600 for more than a fifth of home buyers, Propertywire continues.

By the way, most of those who do not budget unforeseen expenses for buying property, cover them with long term savings (60%). That leaves a further £13,400, of which just over half, 63%, is covered with personal loans (15%), credit cards (27%) and extended mortgages (21%). For most of home buyers, these are long term debts. As money.co.uk claims, only a third, 35%, pays them off within the first year.

According to Chris Morling, managing director of money.co.uk, "These findings demonstrate why methodical planning and budgeting are such important first steps to buying a property. It is all too easy to overlook expenses and end up in a precarious financial position. Households with debt piled upon debt are most likely to be at risk during tough economic times."

On the other hand, Sarah Beeny, a property expert, said she is amazed how some home buyers make hasty decisions without a thought for their budget limitations. In her opinion, such decisions will just result in financial turmoils.

Source: Propertywire.com