How much money should I have saved to buy a new house?

Apart from the money that needs to be spent on getting the home,
there may be so many hidden costs that are involved.
We must also take into consideration these costs, when buying a home.
For instance,

  • one needs to pay for the insurance of the home
  • title insurance (for transferring the title to our name)
  • private mortgage insurance
  • water or property tax amount
  • some fees called state recording fee
  • survey fee
  • credit report fee
  • fee for document writing
  • pest inspection fee
  • origination fee
  • stamp duty

Solicitor’s fees to perform all the legal work, escrow amount,
appraisal fees and so on.

Many people wish to build their own home according to their own
interest and plans.

The cost involved will

  • change according to the builder
  • the raw materials procured
  • land area used
  • interior decoration
  • land value

and so on.
On an average, one needs to spend 65 to 110 dollars for one square
foot in United States, to build a house.
This involves the labor cost, profit earned by builder, land value and so on.

According to the US department of housing and urban development
the no of houses that have been sold in 2009 and 2010 includes
375 and 323 homes, respectively.
In 2010, 55 houses were sold under 150 000 dollars and 8 houses
sold under 750 000 dollars. Thus in US one can buy houses of the
price range between 150 000 to 500 000 dollars and can reach
even beyond 750 000 dollars.
According to the estimates of the economists, the new homes
(with the new raw materials, furnishing and new appliances)
will cost more, compared to the older refurbished homes.

In January 2011, the cost of homes for the older homes was
157 900 dollars and for the new homes, it increased
to 230, 600 dollars.

The cost of the house depends greatly on the location. A single bedroom home with 2 baths and square feet of 1000, built in 1930s is around 239, 800 dollars in Suffen, New York. A similar home in Copenhagen of New York is just 54 000 dollars. In Wisconsin, one needs to save at least 200 000 dollars to buy a 4 bedroom home of 1400 square feet (built five years ago). To buy a 5 year old home with four bedrooms and 3 baths, with 3428 square feet, one needs to save at least 320, 000 dollars in California.

 

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