Planning

Case study: Jilly's costs after moving in

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A first-time buyer reveals some of the costs involved in her move

Jilly Saunders, 28, is training to be a surveyor. After keeping her eye on the housing market for a year and a half and searching seriously for eight months, she bought her first home – a top-floor apartment in a redeveloped hotel in Scarborough – in May 2011.

Jilly was fortunate enough to have financial assistance from her parents to reduce the amount of lending she required. "I found a lovely two-bedroom flat, which was just what I was looking for," explains Jilly. "I managed to negotiate the price down to £190,000 and, after discussing sums with my parents, they offered to put down £50,000 on top of the £45,000 I had saved up since my first summer job 10 years ago. This meant I only needed a £95,000 mortgage."

I'm trying to be careful with my money because I'm very aware of having to pay the maintenance fee

Budgeting for other costs

Because Jilly didn't own any furniture, she decided to borrow an additional £5,000 to furnish the flat and cover any unexpected costs. "It's amazing how much spending can stack up. I've had to buy two beds, a kitchen table and chairs, and then there were various things I hadn't even thought about, like a TV, vacuum cleaner and kitchen goods," she says. "I've probably spent a total of about £2,000 so far, but it's still very much a work in progress."

When working out her budget, Jilly also had to factor in maintenance costs for the upkeep of the shared apartment block. "I'm trying to be careful with my money because I'm very aware of having to pay the maintenance fee," she explains. "I have to pay a bill of £600 twice a year, so I'm putting aside £100 a month so it doesn't come as a shock. It's good that the fee includes my building insurance, but the worrying thing is that it may rise depending on what work needs to be done."

So, were there any unexpected costs involved in the move? "I was very lucky in not having to pay rent when I was living with my parents so I've really had to cut down on my personal expenditure since moving out, which has come as a bit of a shock. I can't remember the last time I bought any new clothes," says Jilly. "I also seem to be spending a surprisingly large amount of money on food now that I'm cooking for myself."

In an ideal world, Jilly would like to get a savings plan in place and start investing in things like a pension, but at the moment she's still trying to work out her monthly outgoings. "My top goal at the moment is to pay off my mortgage as quickly as possible," she adds.

Jilly's key tips for first-time buyers

  • Find out if any furniture or white goods are included in the purchase.
  • Check how easy it is to park outside your home and if you have to pay for a parking permit.
  • Consider how well the property is insulated, as this will affect your heating bills.
  • Bear in mind maintenance costs if you are buying a flat and remember that these may rise.
  • Budget for home and contents insurance.

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