Property – What Are You Really Paying For?

When you’re about to sign up to a twenty-five or even thirty-year mortgage, you need to be absolutely sure you’re getting a house you can call home. Potentially you will be paying back hundreds of thousands more than the asking price for the property. That really is a huge investment, so it’s important you’re prepared to commit. But what are you really paying for when you buy property?


What’s In A Price?

The asking price is considered to be the value of the house you’re purchasing. At least, that is, the market value. To rebuild your home from scratch would probably cost a lot less. That’s the bricks and contractor’s cost. Your home insurance policy might even detail what they anticipate that sum to be (because that’s all you’ll get should your home actually need to be rebuilt). So why the big difference?




Value The Community

Think about your search for that house. You might have picked a particular area or even a specific neighborhood because you know that’s a good place to live. So does the market, so up goes the price. Maybe you’re after great amenities like the neighborhoods at, or a particular community spirit? The more desirable the area, the higher the price for your property. You’re getting so much more than the bricks!


Paying For The Extras

Of course, there is much more that could be adding value to the property you’re buying. There might be a brand new kitchen or bathroom. Perhaps there is high-quality hardwood flooring throughout and a premium basement conversion? Improvements, extensions, and add-ons can all push the value up. You can see how much they’re worth at They make the property more attractive, so buyers will be more inclined to pay a higher asking price.


Moving truck
image credits: TheMuuj –


Hidden Costs

Buying a property will always cost you more than the asking price, though. You have the cost of the legal team, and perhaps an agent cost. Arranging your mortgage probably incurred a fee. Then there is the mortgage itself – all that interest! Don’t forget you need to cover the costs of moving, like the removal van, packing boxes, and travel. You might need to pay more to commute to your job now, and a new school for the kids might charge more fees too.


More Than Your Money’s Worth

Yes, buying a house is expensive. It’s quite a stressful and drawn-out process too. You’re paying with your time and emotional stability as well as your cash! But you’re buying a dream. You’re buying safety and security for your family. You’re buying a place where the most treasured memories you’ll have will be made. You can’t put a price on any of that.


To get to this point, where you’re signing for a mortgage, you’ve probably saved for years. That’s a lot of frugal living and sacrifice. That’s a lot of saying no to a vacation, a meal out, or that dress you fell in love with. You’ve done really well to get this far. Now, of course, the frugal living will continue as you put everything into making those mortgage repayments. Don’t worry – it will get easier, and isn’t it all worth it?


Spread the love

Share this post

User Avatar
About the author

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.