Aside from the purchase price, understanding the other costs can help you make the right decision.

It is more than managing home loan payments that are required when taking that first important step in owning a home. There are additional expenditures associated with purchasing your first home. Some of the most important ones to budget for are listed below:

  • Connection Fees for Utilities

The essential utilities in your new home (gas, water, power and internet). The rates vary depending on your location. It is important to compare prices and choose a plan that suits your needs.

  • Conveyancing Fees

Conveyancers assist you in transferring the property into your name. This is very essential when purchasing your own home. The fees vary so ask around for price quotes before making a decision.

  • Mortgage Protection Insurance

Getting sick or losing a job is hard enough without worrying about the financial stress that comes with that. Your home is one of the most important investments you make. For you to keep up with your loan payments, it is best to protect your mortgage.

  • Moving Cost and Removalist Cost

We know that it may be stressful to move from one place to another. Include this cost in your list. Compare costs to get the best deal.

  • Pest and Building Inspection Fee

Getting a pest and building inspection provides peace of mind. It pays to get a professional inspection before purchasing your own home.

  • Stamp Duty / Transfer Duty

This is a tax by the state and territory governments. The amount of stamp duty or transfer duty varies based on the value of the home. First home buyers like you may be entitled to some stamp duty reduction depending on the state you live in.

  • Council rates

A tax by your local council for the upkeep and improvements of local services

  • Strata fees and home insurance

Strata fees are fees charged for apartments, townhouses or villas. Basically any (group of) properties with common driveways, grounds, parking etc. These fees cover the upkeep of those areas. Home insurance covers you in the event of a fire or natural disaster.
If you have any questions, Micah Finance Solutions can help you. Schedule a Free Consultation today!