With the relatively low mortgage interest competing with the continuous rise in rental rates, a lot of individuals and families are now looking to purchase their own homes. The actual cost of a property, though, involves many hidden costs beyond the mortgage payments.
Whether you’re at the closing stage of your purchase or on your evaluation period, you should take some time to consider the additional charges to homeownership – these are expenses that go beyond the mortgage, property taxes, and settling costs.
To help you get started on your budget plan for this, we’ve prepared a list:
1. Moving fees
One of the most important things to take note of when purchasing – you will need to move your things into your new place. Whether you’re hiring movers or doing it yourself with rental vans, this will come with a cost. Moving fees can vary based on the location, the truck size, the amount of stuff you’re bringing in, and the season.
2. Furniture and decorations
You may not have all the furnishings you would need to fill your new space, especially when you’re moving from a smaller place to a bigger one. List down the furniture you may need and plan a budget for furnishing and décor so the expenses won’t surprise you.
3. Renovations or fit-outs
Even when you’re moving into a new home, there would definitely be a few things you would want to change, to truly make it yours. Perhaps you’d want the master bedroom to be repainted or maybe you’d want to add in a small room to use as a home office. It would be good to keep these in mind when budgeting for your home.
4. Maintenance and home repairs
Maintenance and repairs, especially when unexpected, constitute a big part of the costs of owning a home. Always make sure to have funds allocated for unexpected repairs.
If you are moving from an apartment to a bigger home, expect an increase in your utility expenses. In addition, some of these utilities may ask for an upfront deposit or connection fee to get the services started.
6. Pest control
When you own your house, you’ll have no landlord to call to take care of your pest problems. In an average year, 84% of homeowners deal with a pest problem – whether it be ants, spiders, termites or mice. Dealing with pests can be more expensive than preventing pest infestation, so it would be best to spend for routine maintenance.
7. Exterior maintenance and upkeep
Your home’s exteriors need as much love as its interiors. Think gutters, lawn, paint, sidewalks, and driveway. Gutters will need to be cleaned at least twice a year. Lawns will need maintenance too – you can hire professionals to do this or you can also do it yourself. Also, keep an eye out for peeling paint and cracks along your home’s exterior.
8. Homeowner’s insurance
This is a type of hazard insurance covering any losses from your property or liability coverage from accidents that may occur within its vicinity – this is usually required by lenders. The amount needed for this will depend on factors such as location, so get different quotes for this insurance before deciding to close.
9. Security system
A good way to ensure safety in your home is to install a good security system. This could come in the form of CCTVs, motion-detector lights, or alarm systems. These extra safety features may cost you extra money but could actually also save you a lot in the long run.
10. Homeowners’ Association Fees
Select neighbourhoods have a monthly or annual homeowner’s association fee. These are used for the maintenance of community facilities or any other community event.
A lot to digest – we know. Many of these expenses can also be hard to budget for, as they may be unexpected. Just always make sure you have sufficient emergency funds for any home repair/maintenance issue that will come up.
When well prepared, owning a home can prove to be more beneficial than renting. If you’re looking to buy properties and are not sure where to start, Buying Perth Real Estate can help you. Our professionals offer free consultation – feel free to give us a call at (08) 6215 0200 or email us at firstname.lastname@example.org.