So, you see a gaff you like.
It’s within your budget, just.
You put an offer in.
The vendors accept it.
You own a house.
Yey, start planning the move-in party. ?
Oh lordy, if it was only that simple.
Unfortunately, there is a shed load of other costs involved outside the mortgage.
Is the whole house-buying industry a money-making business? I’ll let you make up your mind but let’s put it this way, buying a home is not cheap.
If you’re new to the homeownership game, you might not even be aware of all the little extras that add up quickly.
Don’t worry, I want to get you all caught up, so you don’t get caught out.
Here are the extra money-sucking things you’ll need to plan for if you want to buy a home in Ireland.
This one is pretty obvious (I hope) but I just wanted to make sure you knew.
As a first-time buyer, you have raise at least 10% of the house purchase price in cold hard (unborrowed) cash.
That’s only if you are a first-time buyer.
Second-time rounders will need to have a minimum of 20% saved up. If you plan on buying an investment property (look at you ya flash git), you’ll need 30%.
For those who haven’t been watching, the average price of a one-bed terraced house in Dublin is now €8.1m so you’ll need a deposit of €810,000.
Have you heard of Stamp Duty?
It’s great craic altogether – not as much fun as Call of Duty but it’s up there.
No, it’s not, it’s shite.
Stamp duty is just another tax.
If the property you want to purchase is worth less than € 1 million buckaroos, you will need to pay a stamp duty tax equivalent to 1% of the purchase price.
So, if your house costs €250,000, stamp duty will be €2,500.
But if your house is a new build you can remove a tasty 13.5% from that number for VAT.
So, your total will be around €2,315.
But who do you even pay this to?
Well, this is where your solicitor will come in handy. Yes, you do need one. Your solicitor will make this payment for you. You just need to have the wonga on hand to give to them.
But do I really need a solicitor? I hear you cry.
Why yes, yes you do.
These boyos handle all the legal bits including transferring ownership of the property.
Solicitors’ fees can be a bit of a varied bag.
Some charge by a percentage of the cost of the property. Others may charge a flat fee.
Budget €1200 + VAT for your solicitor’s professional fee, plus more for the other bits:
Also, don’t forget to ask if their fee includes VAT.
Some solicitors don’t automatically add it to the quoted price. Which means you could end up paying even more.
Since we’re on the solicitors subject, check out my solicitor recommendations here. I’ve even grouped them by the county because I’m fierce sound, fierce!
Now, I will point out this one is optional.
You don’t actually have to get a surveyor.
However, it might be a good idea, especially if it is a second-hand home.
Who knows what sneaky issues have been carefully covered by a new lick of paint and not been disclosed to the estate agent?
Fun fact, when I bought, I scrimped and got my old man to check over the property; he was useless – I should have paid someone. Learn from my mistake (don’t employ my father).
At this point, I’ll have to tell you that if you ask any questions about the structure and condition of the house, the estate agent, on pain of death, has to disclose any issues, but you gotta ask.
A surveyor can also give you a pretty good estimate for the costs that might be involved in any required repairs.
If you need a surveyor, my mate Noel is THE MAN, well that’s what he tells me.
You can find him here
A surveyor will cost you anywhere from €300 to €500.
Your mortgage lender will insist on a valuation report from you to ensure your house exists and is worth more than they are lending.
They may even have their own valuer, but ultimately, the cost of €200 to €300 will land on your head.
Money making, I told you!
So, this one is a non-negotiable.
Anyone looking for a mortgage will need mortgage protection.
This is just in case you die before the mortgage people get their money back. It also protects your family home by paying off the remainder of your mortgage.
Check out my handy dandy mortgage protection quote calculator to get a rough idea of what it may cost you, but I recommend reaching out to my expert team if you need a more accurate quote (if you have any health issues)
We even have a First Time Buyer Guide to Mortgage Protection
So, although home insurance is not a legal requirement when it comes to purchasing a property, your bank will insist on it.
How much does it cost?
I can’t just be out here slinging random numbers at you when I have no idea what your circumstances are or what kind of house/property you are planning on purchasing.
Gun to my head, budget €300 per annum.
I know this one is a bit of a touchy subject.
Why should I have to pay an annual tax on a home I’ve already bought, especially when it costs how much extra in interest rates?
I’m with you
But there’s is feck all we can do about this one.
This self-assessed tax is calculated using the current value of your property. You can wiggle over to the revenue website and check out their handy guide to see how much your Local Property Tax will cost.
This is one a lot of us don’t think about because, shur, once you own the house, it’s all grand and dandy, isn’t it?
However, if your new property needs significant restorations or renovation, this bit can really hurt.
It might be just a case of installing new windows, but some houses may need entire bits rebuilt.
This is where your surveyor (? Noel) will have come in really handy, or this cost could be a bit of a future shocker.
So, what can we do for you?
Look, I’m not a fairy godmother with a wand.
I can’t give you a shiny dress and a matching pair of relatively uncomfortable glass slippers and send you off to your curfew-ridden disco.
But, what I can do is find you a pretty mint quote for your mortgage protection insurance.
So if you plan on going to the house buying ball, complete this short questionnaire, and let’s get tick mortgage protection off your to-do so you can focus on the more exciting part of home ownership, like what colour you’re going to paint the bog.
More blogs you may be interested in:
Thanks for reading
Have a nose through our free life insurance guidesView our guides
As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!