As a first home buyer, many individuals carefully create a budget
that they believe will give them a good idea of what they can
comfortably spend on house and land packages or a custom finished
residence designed by one of the professional home builders in their
area. They may take into consideration a monthly house payment versus
their lease or rent payments and they may include the cost of a down
payment, but for the most part, the average first time buyer leaves out
at least two or three important factors that can have a profound effect
on their budget and how much house they can really afford.
Future Maintenance And Repairs
Whether
you’re looking at house and land packages, an older house that needs
some renovations or a brand new display model, your house will need
regular maintenance as well as periodic repairs as the years roll by.
When you’re renting, the landlord is usually responsible for the bulk of
any maintenance or repairs, but once you own your own place, you’re on
the hook for anything from repairing or replacing worn or damaged
appliances to repairing a leaky roof. Months can go by without any
repairs needed, but when they do crop up, they can be expensive. The
same goes for maintenance such as painting walls or washing the windows.
You can do it yourself or hire someone to do it for you; either way
will mean you’ll need to invest in the tools and materials at the least.
Increased Utility Costs
As
a first home buyer, you’re probably going to be moving into a space
that’s larger than your current rental or apartment. While all that
extra space feels wonderful, it does require more power to keep it
running smoothly and maintain your comfort. Air conditioning, heating
and the cost of running more appliances or using an entertainment system
can all add up to a utility bill that could surprise you. Be sure to
ask your home builder about the typical cost of heating, cooling and
electric for your style of dwelling, including typical prices during
both winter and summer months. If you discover that your utilities will
cost 30% more than they did when you were renting, add that into your
monthly expenses before deciding how much house you can afford.
Various Mortgage Fees
A
mortgage calculator can give you a general idea of what your monthly
mortgage payments will be, but you’ll need to add in several fees that
your lender may charge in exchange for giving you the loan needed to
purchase as a first home buyer. These fees may include:
Mortgage application/processing
Mortgage establishment fee to set everything up
Property valuation, particularly if the house or property have been altered or renovated recently
Mortgage registration
Stamp duty (if applicable in your territory)
Lenders mortgage insurance
Obviously,
these fees can quickly add up. Fortunately, these are one-time
expenses, but they can raise the initial payment or the costs at closing
by several thousand dollars.
Property Or Land Taxes
While
many land taxes and property taxes have been abolished or revised in
some territories, they still exist in others. Be sure you talk to your
home builder and your lender about any taxes that may have to be paid
when buying house and land packages so that you aren’t blindsided by an
unexpected tax.
Property Management
If
your home builder offers house and land packages in planned communities,
golf communities or some townhouse developments, there may be a
property management fee that will have to be paid on a monthly basis.
These fees cover the cost of management and care of common areas and
some amenities within the community. These can vary widely, so be sure
to ask.
A first home buyer can be intimidated by the many
potential costs and fees associated with residence ownership in
Australia, so do some research and put together a complete budget before
making a commitment. Your local home builder can usually answer any
specific questions you may have, helping you find a place that you love
and that fits your financial situation
, ensuring many years of enjoying
your new residence.