Jump to content
House Price Crash Forum
Sign in to follow this  
fdk

Stamp Duty And Other Buying Fees...

Recommended Posts

Now that HPI is clearly on the wane for all to see, all of the additional costs associated with buying, and then selling a property later on, suddenly start to become very important, especially for investors.

For a typical £250K property you have:

Stamp duty - £2,500

Solicitors fee for buying - £700

Mortgage fee - £500

Estate agents fee when you come to sell (assuming you get what you paid for the property)

: say 1.5% + VAT = £4,400

Solicitors fee from selling - £700

TOTAL FEES - £8,800 (This all assumes no redemption fee for terminating your mortgage early)

Previously people didn't care about fees because they assumed HPI would overtake these costs within a few months.

Now there is no such guarantee.

For a £325K property, using the above assumtions takes us to an amount equal to £17.4K of the original purchase price.

And most impotantly for non-investors doing their rent v buy calculation, these fees make a huge difference as to whether it's worth buying soon or staying in rented a while longer.

If you were planning to buy a flat/small house now with a view to trading up in a couple of years, these extra costs make that far less worthwhile.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.