The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald

The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald.
By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants.

In last week’s Herald ‘Money Matters’, we looked at some of the costs involved in buying a home.
Buying a property is one of the biggest financial decisions you’ll ever make.
But, is it the right decision for you right now – or would you better off renting?
It’s important to weigh up the pros and cons of owning first.
Benefits of owning -
Once you’ve paid off your mortgage, your home will be yours and you won’t have to worry about paying for somewhere to live.
If your home increases in value you could use the equity to help buy a bigger home or fund a comfortable retirement.
You can spend money improving your home and increasing its value without having to ask a landlord.
Sometimes it can be cheaper to buy than rent.
Potential downsides of owning
It’s a big commitment – you need to be sure you can afford what you’re taking on.
If the value of your home falls, you may be unable to sell if you owe more to your mortgage lender than your home is worth.
When interest rates rise, your repayments will go up. It’s important you’re prepared for a rise.
You need to be sure you can afford maintenance costs like fixing a broken boiler or leaky roof.
If you stretch your budget when you buy you may not have money for meals out, holidays and entertainment.
You have less flexibility than when renting. For example, selling up and moving is more expensive as you have estate agency and legal fees to pay.
It may not always be easy to sell your home, depending on what’s happening in the market.
If you’re living with someone and split up, deciding what to do with the property can be complicated and expensive.
If you do decide to go down the path to buying a house, the first step is working out whether you can afford it (we explored some of those initial costs last week).
The act of moving home can be expensive in its own right, so here are some tips –
1. Get a handle on the cost
Once you have a handle on your new mortgage payments, new insurance policies, solicitor and estate agent fees, make time to get to grips with moving day costs. Whether you’re a first-time buyer or a seasoned home mover, it’s important to get a handle on the costs associated with the day.
2. Know what’s coming
Once you’ve got the keys and opened the door to your new home, as well as spending time getting your furniture into place, make time to fix your finances to suit your new home.
Here are some key things to be aware of.
Removal costs – shop around for several different quotes (and references too) to find a reliable firm. The British Association of Removers (BAR) can provide cost estimates from BAR-approved firms.
Removal insurance– check the removal firm you hire is insured. If you’re moving yourself, think about arranging insurance cover. Check if your existing home insurance policy will cover your move – many policies will if you are using a professional firm.
Storage costs – shop around to compare prices and security arrangements, and get a sense of average costs. Estimate the length of time you’ll need the facility, because prices vary depending on the term of contract.
Cleaning costs – if you’re moving from a rental property you must usually leave it clean and tidy. Not doing so might contravene your Tenancy Agreement and your landlord may be allowed to charge you for the cost of a professional cleaner.
Mail redirection costs – Royal Mail’s Redirection service is a reliable and cost-effective way of continuing to receive mail when you move home. It also reduces the risk that you will be the victim of identity fraud.
Extra moving day costs – think ahead to the day itself. Do you need to budget for extra childcare or kennels for a pet? Will you have the time or facilities to cook or should you plan for takeaways for a day or two?
3. Get insured
If you’ve bought a home and have chosen a special mortgage deal or a fixed rate, remember to make a note of when it comes to an end. Then, check out what’s available a few months before it ends to make sure you get a good deal.
If you’ve bought a new house, you’ll most likely need building insurance. If you have a mortgage your lender will insist on this. Remember, you don’t have to buy it from your lender, so shop around to get the best deal.
You can also buy insurance to cover the loss of or damage to the contents of your home, such as your furniture and electrical goods. Don’t forget to compare the terms and conditions as well as prices.
4. Sort out your new bills
Get to grips with your new household utility bills as soon as you can.
5. Keep track of your new budget
It’s a good idea to review your budget whenever your financial situation changes. As you settle in your new home, make time to work out how much you’ve got coming in and going out each month.
You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) -
http://www.clayshawbutler.com/news/latest-news-for-business
We have a strong and experienced team with great local knowledge all geared-up to helping you get the very best from your finances – whether that is as an individual or as a business.
We stay ahead of the game by putting great store by continual professional development for our staff.
With Investors In People status at Clay Shaw Butler, we care passionately about making sure our staff have all the tools they need to serve you, our customers.

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