"House Prices Double in 4 Years". "UK property prices are constantly on a rise." "Property prices still creep up by 1%". Most of you would have read these lines, what we constantly keep thinking is that why is there a ceaseless boom in the real estate market of UK, including and especially London?
The answer is quite simple the location of UK and London in particular is very strategic. Due to its location UK can trade with the Asian countries in the morning and with US in the evening, which makes it a buzzing hub for all sorts of commercial activities. Many people even call London the Commercial Capital of the World.
The point to be noted is that due to its ever-vibrant trade and commerce a lot of people come to UK every year and where on one hand the population is increasing almost uncontrollably the available housing facilities are quite less when compared with this vast population. So due to this reason the prices of houses are almost constantly increasing in London.
In such a scenario buying a house might cost you a fortune! Moreover, most people forget to consider a lot of other costs that are associated with buying a house, they just think of the mortgage and the down-payment but there are much more costs that are associated with buying a house, to List down a few:
Insurance, prior to getting a mortgage most lenders will ask you for a proof of insurance. The insurance rates vary from property to property however for an average sized property in a regular area would cost you about £ 1000 annually.
Property taxes/Stamp Duties are the second outflows that are out of your control. Obviously bigger properties make you pay more taxes than the smaller ones but the average vary from 0% to 5% according to the price of the house
Utilities are also an important factor that most people tend to forget while calculating the cost of buying a house; it costs about £ 2,000 to £ 4,000 annual to heat up your house to pay the council fees and so on.
Appliances even though most houses come with major appliances you might have to buy some new ones too!
Legal Fees, Mortgage Lender's fees, Survey Fees, Agent's Commission, Fixtures and Fittings and there might be a few other which will be left out no matter how perfectly you try to incorporate every cost in your calculations.
So, buying a house in UK indeed costs a lot!
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