Understanding the hidden costs of homeownership

When you're buying a house, you're probably quite concerned with the asking price, as well as the other costs associated with obtaining a mortgage. However, when you're trying to figure out what you can actually afford, you need to think about some of the other costs of homeownership you're likely to encounter.

Apart from the fees that you can expect to pay as part of the homebuying process itself – meaning you will have to put aside thousands of dollars for conveyancing, government and bank fees – there are other considerations once you actually move in. Domain notes that these include the cost of moving from your current residence to the new one. Especially if you are hiring professional movers, this can cost hundreds of dollars, but even if you're just relying on friends and family, you will probably have to spend a bit of money on moving supplies, truck rentals and, of course, pizza for everyone who helps.

Setting aside cash for after moving in
Once you've actually settled into your new home, it's not uncommon to run into a few unexpected issues within the first year or so. As such, you should be prepared to take on the task of repairing or upgrading parts of the home that aren't quite up to your preferred standards, as well as what you have to pay to maintain the home and the land around it. All of this means you might have to set aside as much as $5,000 just to have a comfortable cushion.

Other expenses
Even after you've smoothed out all the little wrinkles that come with homeownership, you should keep in mind that there will be more monthly or annual costs. Lifehacker advised that you will need to pay for things like homeowners insurance, property taxes, utility bills and your actual mortgage payments. These are the kinds of factors you need to budget for in advance, but also always have money set aside for in case of a financial emergency.

When you're trying to understand everything that goes into homeownership – both in your everyday life and financially – it helps to have an experienced real estate agent on your side. At Ray White Surfers Paradise, we've helped countless people find the home that fits all their needs, and we would love to do the same for you. Give us a call today to learn more about how we can help you navigate the homebuying process.