Purchasing your first home is simultaneously one of the most exciting and the most daunting experiences you will ever have in your life, and often it can be mind-boggling just how much new information and responsibilities, not just financial, you immediately have to absorb.
Here are the main costs of running a home, simply explained.
Home Insurance
Home insurance is a vital commitment that you must adhere to as soon as the keys to your new home are in your possession. Essentially, home insurance covers the contents of your home in the event that they are stolen or lost in a fire or similar devastating accident. It is so crucial, in actual fact, that the majority of mortgage lenders in the United Kingdom insist on the acquisition of home insurance as part of the mortgage deal.
Gas and Electricity Bill
Essentially, your gas and electricity bill will cover the cost of keeping your new home powered and warm. Another thing a new homeowner should check is the efficiency of the central heating and radiators throughout the property. If necessary, it may be prudent to replace certain or all of the radiators in your home to ensure you are not paying more than you should be for your central heating. Radiators in the UK are more than essential, especially during the cold winter months, and it will hugely benefit you in the future if you take care to ensure they are all in full working order right from the start.
Council Tax
Throughout the UK, each property is classified within different bands, which results in a different price for your own personal council tax costs, dependent upon which category your new home falls into. In a strange but accurate rule of thumb, the price you pay in council tax in the UK is almost always determined by the property price your house was worth back in 1991. Additionally, if you are going to be living alone in your new property, you will be eligible for a 25% discount on your council tax bill.
Water
The current average cost of a water bill per month in the UK is approximately £33.75. However, water rates tend to vary quite drastically depending on the area in which you live and how much water is available in your area. If your house is already fitted with a water meter, your bills will rise and fall depending on how much water you yourself specifically use each month. Unlike with gas and electricity suppliers, you are unable to change your water supplier as that is decided purely on the location of your property.
TV, Internet and Phone
Nowadays, broadband and television bills make up a significant part of a householder’s monthly outgoings, and as a rule, new customers generally benefit from larger discounts more than existing ones. It is strongly advisable to research different providers and, in essence, barter with them to secure the lowest possible price for their services.