It can be too easy to become swept up in the excitement of buying a property, that you forget about the extra costs added to the initial asking price. We know that finding the right home in the perfect location can lead to a big financial outlay, but exactly how big is the final price tag? Below are some tips to help you expected the unexpected and prepare for those niggly little extras all homeowners will inevitably face when buying a home.
Research
One of the best things you can do when purchasing a house is to adequately do your research! If you aren’t the savvy real estate type, there are many professionals who will jump on board. These include mortgage brokers and legal agents who will assess your finances and help you incur any costs you may face along the way. This could include bank fees, state fees, income insurance, document preparation fees and government taxes. However, remember to factor in the cost of their services too.
Get An Inspection
Even if you can afford the money to receive the keys to your home, the extended costs may be a result of the house’s poor condition. The tip to remember when buying a home is that costs can be hidden – like repairs and pest issues. Hiring an inspector will uncover any problems and give you an indication on costs you may need to front if anything is faulty.
Consider Your Extra Amenities
A small but often forgotten cost is the price you pay for your own comfort. Used to Foxtel? Need a better heating and cooling system to combat the colder and warmer months? Extra powerpoints? All these things that help you live happily and comfortably may need to be included in your new home budget.
Moving Costs
Another additional cost usually forgotten when buying a new home is moving out of the old one. If you don’t have the luxury of generous family and friends with trailers and free labour, then forking out the expenses to hire a team of professional removalists is a cost you need to factor in. Check out this article for some moving tips for you to stick to when preparing for your big day.
Insurances
Buying a home is an extremely exciting journey, so it is inevitable that you must protect your new asset with a catalogue of insurance. Insurances you will need to consider and purchase include, home and contents, life insurance, income protection, mortgage insurance and landlords insurance if you plan on using your property as an investment over time. Visit RACV for landlord insurance quotes.
Connection Fees
When you move home, depending on your distributor, you may be charged a disconnection/reconnection fee on your electricity/water. This can vary depending on which state you live in and may change from time to time.
Lenders Mortgage Insurance (LMI)
If you borrow more than 80% of your home’s value, chances are you’ll be asked to pay LMI. It’s a type of insurance that protects the lender, not you, if you can’t keep up the repayments, and the cost can be substantial depending on the size of your deposit. The cost of lending a significant amount toward the sale of your home can be substantial and add upwards of thousands to your overall financial costs.
Are you in the process of building a new house and looking for a builder? Contact our iBuildNew team on 1800 184 284 or book a call for free, expert advice on choosing the right builder for you.
Breanna Taylor
Breanna Taylor is a third-year journalism and PR student studying at Swinburne University in Hawthorn. She has a strong passion for interior design and a growing interest in property development and renovation.
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