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Expat Investor : September 2008
PROPERTY INVESTMENT Cost cutting home-movers opt for DIY there are some areas where you should not cut corners, such as legal fees and a thorough survey, as this could end up costing you more in the long run.” Consumers are also cutting back on luxuries to help meet the cost of moving home. Holidays are the most likely sacrifice (61%) homeowners make, closely followed by meals out (56%) and new clothes (48%). Despite their cost cutting efforts, 85% of homeowners admit they do not stick to a budget for their move and over a quarter (29% ) admit they don't even set one. Saving tips for moving home ? Set a budget – factor in all of the extra costs such as storage. ? Shop around – don’t accept the As financial belts are tightened across the UK, homeowners are taking a ‘do it yourself' approach to moving home to help keeps costs down, according to new research from Lloyds TSB Mortgages. Over half (52%) of those surveyed by the Bank admit they plan to undertake the removal process themselves to help save cash in the current climate. A further one in ten homeowners plan to adopt the role of estate agent and sell their property privately to avoid estate agent fees. Lloyds TSB questioned over 1000 homeowners who have moved home within the last year or plan to move in the next twelve months. According to the findings the average homeowner spends £7434 on their home move, with one in five spending over £15,000. Alison Burns, Director of Network Mortgage Sales, comments, “In the current economic environment, it's not surprising that consumers are taking a more cost conscious approach to moving home. Shopping around for good deals and opportunities to earn rewards on your spend is always a good idea but first quote you receive. Look for deals or opportunities to earn rewards on your essential spending. ? Negotiate – be prepared to haggle, especially on removal quotes and negotiate with existing owners on appliances and furniture. ? Call on friends and families – rally willing volunteers to help out with your move. But do check your insurance will cover you for a DIY move, as many won’t. ? Time it right – Friday is a very popular, and often expensive day to move, so consider mid week options. Fast Facts 77450 Does a pint of milk last longer than a mortgage deal? and customers were spoilt for choice: providers kept their mortgages on their books on average for 30 days at a time. Now there are just 3,814 products available. According to Moneyfacts Mortgage Metrics, the average new mortgage is around for only 11 working days; indeed, last month when Bank base rate fell by 0.25%, new deals came and went within a staggering six days.” Households have got their morning routine of a fresh cup of tea and a bowl of cereal down to a fine art. The shelf life of a pint of milk is between eight and 15 days and for most of us it’s readily available and in durable packaging, with healthy benefits for us all. Darren Cook, Head of Press at Moneyfacts.co.uk, points out that one might expect home owners currently considering a mortgage, one of the biggest financial decisions of their lives, to take longer than the shelf life of a pint of milk to consider the mortgage options available to them. But, Mr Cook confirms, this is not the case. “Up-to-date research by Moneyfacts shows that the average shelf life of a mortgage deal is down from 30 days a year ago to just 11 days now. Last year, there were over 15,000 mortgage products on offer The way forward? “This news is not encouraging for the 1.4 million individuals who are expected to remortgage their homes this year, when their existing short term fixed rate deals expire,” says Mr Cook. “Many of these have tried to plan ahead to make the transition between mortgage deals less financially traumatic. Unfortunately, until the current market readjustment is complete, the ability to time the mortgage market has become more of a lottery than an art, with the majority of today’s better deals expected to have disappeared by this time next week. “Those individuals should first access a reliable mortgage data website, record and continually monitor between 10 and 20 suitable mortgage products. This will enable them to see the potential difference in cost between their old and new deals and its affect on their overall household budget. Most importantly, it will allow them to access the mortgage market with the confidence to make an informed choice.” September 2008 ? EXPAT INVESTOR 21
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