While it’s not a surprise that buying a home can be expensive, when you’re a first time home buyer you don’t always realise that there are other costs involved. You don’t just pay for the house itself, and when you’re just starting on the property ladder you need to have a full understanding of where your money will go. It can save you spending more than needed, too.
Here are five costs that many first time home buyers don’t expect, and that it pays to be prepared for.
Before signing on the dotted line, you need to have inspections carried out on your potential new home. While it may seem pricey to pay for building and pest inspections, the fact is that without them, you could be leaving yourself open to a whole range of problems down the track. If you’ve already signed the contract, you have no recourse when a structural problem or pest infestation is identified
Budget for these pre-purchase inspections to save yourself more money in the long run, and to ensure you’re buying a property that is safe and structurally sound.
You don’t legally have to have a conveyancer when settling on a property, but if you try and save money by doing the paperwork yourself, you leave yourself open to losing the house (and your deposit). Conveyancing fees are definitely worth it, to ensure that the legal title of the property is correctly transferred and that you’re protected during the purchasing process.
A lot of first home buyers aren’t aware of the fact that there are government charges you need to pay when buying your first home (or any home). There’s the mortgage registration and property transfer fees, as well as stamp duty. On the bank side of things, you’ll have to cover the property valuation of the lender, the loan application fee, and ongoing fees like account keeping fees.
There is also Lender’s Mortgage Insurance (LMI), which is put in place to protect the lender if a borrower can’t pay their loan and ends up defaulting on it. It comes with getting a mortgage when you have less than 20% as your deposit.
Unlike rentals, there aren’t really cleanliness standards when a property is vacated once sold. It’s important to have a place in your budget for professional cleaners, in case the property has been left in an unacceptable condition that requires expert attention. You might also just not have the time to clean your new home before you need to move in.
Once you’ve bought your first home, it’s hard to get used to the idea that there is no landlord to call when something breaks or needs replacing. It’s wise to put money aside for maintenance before you move in so that you’re prepared for when things go wrong. Things like a burst pipe or a broken hot water system can be pricey, and can’t wait to be fixed.
If you’re prepared for the costs of buying a home, you’re going to have a much more positive experience and will be able to quickly settle into life as a homeowner.
Hiring a professional removalist company means that your belongings are going to be packed safely and make it to your new home in one piece – so you won’t have to spend extra money replacing broken items like you might if you were to pack and move yourself.
The team at Removalists On the Run will make moving day a straightforward and simple process, so get in touch with us today.