Members

A mortgage calculator can give you a general idea

Every first home buyer should home elevator take into account the many hidden costs of home ownership before paying a home builder to design their dream house. Home and land packages that combine costs can be attractive, but buyers should keep future expenses in mind when considering the many possibilities so that they'll stay within budget.

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.

Views: 2

Comment

You need to be a member of On Feet Nation to add comments!

Join On Feet Nation

© 2024   Created by PH the vintage.   Powered by

Badges  |  Report an Issue  |  Terms of Service