Buy/sell: how much do I lose?

jessie_the_drifter

Hello good people, I'm looking to get a rough idea on the cost of buying and selling a property. My intention is to buy to live, not sell on, but it is likely my job may take me away from the UK in a year or 2. I have been in this position for a few years now and have been renting at a cost of around 9 grand a year.

Properties similar to the one I am renting are being sold for around 150 grand. I have cash savings that should be able to cover this amount based on some initial discussions with an estate agent but would like some unbiased opinions. I have been advised to consider about 10% extra buying costs to cover for various fees (legal and stamp duty). No mortgage would be involved. Of course, this expense (15 on 150 grand) would be unrecoverable if selling.

I imagine at least 5% cost in selling on, so ignoring any valuation changes (nobody knows) it's about 20% or 30 grand to get in and get out of a 150 grand flat. Do these numbers sound realistic?

As much as I hate renting when I have the cash to purchase, a 30 grand buy/sell would cover 3 years rent so I'm leaning towards staying put at the moment... What would you do?

AdrianC

Stamp duty is 1%. EA fees are typically 1-1.5%. Solicitor's fees on a purchase and sale would be unlikely to top £2k, call it £2,500 max. So, on a £150k flat, you're probably looking at £5k max.

But that's before you figure out lost investment income on the money you've bought the place with, service charges and maintenance - or any rental income (less management fees and other costs).

jessie_the_drifter

2.5k solicitors fee for both purchase and later sale or just 1 transaction?

Assuming it's sale purchase is a net sum, I have:

On buying:
- stamp duty at 1% = 1.5k
- surveyor = 0.5k
- solicitor = 2k

= 4k purchase cost (no mortage)


On selling:
- estate agent at 1.5% = about 2.5k
- solicitor = 2k

= 4.5k selling cost

So, around 9k to buy and sell short term. The 10% I had quoted (15k) seems high but a conservative number closer to 10k and not 5k is reasonable, is it not?

moneyistooshorttomention

I had calculated that my "swopover costs" as I called them to sell one house and buy another (at other side of the country) would come to around £9,000. This, with the two houses concerned, being in the £150k-£200k bracket.

That was pretty much what it did cost in the event.

padington

http://www.rightmove.co.uk/cost-of-moving-house.html

jessie_the_drifter

Interesting link, results on 150k below. On selling, maybe due to region (South East) they've put a highish EA rate of 1.8%- does this really include everything (including any legal fees)?

Buying Only

Stamp duty (1%) £1,500
Legal fees (0.5%) £750
Other costs (0.5%) £750
Total cost £3,000

Buying and Selling

Stamp duty (1%) £1,500
Legal fees (0.5%) £750
Other costs (0.5%) £750
Estate agent fees (1.8%) £2,700
Total cost £5,700