Making a home purchase is an exciting time in your life! Owning your own home, being your own landlord and making an investment in your future to just name a few big changes! But have you stopped to think about the responsibilities that come with owning a home?
Annual expenses
Sure you’ve probably been walked through the upfront costs of purchasing a home, but have you considered the longer term financial implications? Some of them can be hefty but if you are prepared to receive the bill, they won’t take you off guard! Besides the council rates - which take care of rubbish collection and road maintenance in your neighborhood, there may be other fees due. If you’ve purchased a home within a body corporate, then you are liable for body corporate fees that may pop up, such as for communal facility maintenance.
Insurance costs
As a homeowner, you will be advised to insure your home. While it is not a legal requirement, most mortgage lenders will require you to take this type of insurance out on your purchase before the loan becomes unconditional.
Other insurance options that you can consider taking out on your home include home and contents insurance. While this is not required or a legal responsibility, it makes sure that you’re able to weather an unexpected disaster.
Don’t underestimate these insurance costs! Take the time to properly research and budget for these types of expenses.
Maintenance costs
Most homes will need maintenance to be done on them - from simple painting updates through to more complicated repairs such as faulty plumbing, home maintenance costs will likely pop up.
Unexpected expenses
Unless you’ve taken out insurance on all the possibilities, being a homeowner sometimes comes with the most unlikely and unexpected costs. To name a few it could be a special levy from your body corporate or a pest problem that needs to be taken care of.
Home inspections
Here’s the thing - you’re making one of the biggest purchases of your lifetime, so it’s a good idea to go into the deal with your eyes wide open. Building inspections or pest inspections are ideal in picking up on any issues that need to be addressed immediately - avoiding heartache in the first place.
