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How to budget for the added costs of home ownership
So you're looking to buy a house. Whether it's your first home or you're moving up the property ladder, what are the extra costs you need to budget for?
Buying a house is an exciting time. While it's great to get swept away in the fun stuff, let us help you answer one key question you need to know - how to budget for it?
Remember the costs don’t stop at the purchase price, so get out a piece of paper and write down the following costs (your Mortgage Adviser can help you with this):
REGULAR ONGOING COSTS
- Council Rates (these can be found on the city and regional council websites) - remember these are often tied to the registered property value (RV), so if you're buying a more expensive property, chances are you'll be paying higher rates
- Bank fees & mortgage repayments
- Insurance - for both your personal / life insurance and insuring your home (contact our Insurance Advisers for a review at no cost to you)
- Body Corporate Fees (if any) - these are not always applicable, but if they are they should be provided by the agent on behalf of the body corporate committee
- Noticeable repairs or maintenance costs (beyond anything major, a rough budget of $2000 per year for property maintenance is usually a good base to start with)
- Rental income and property management fees (if you are renting it out)
- Renovation costs (if you have ambition for a doer-upper)
- Buying entity set up – i.e. are you buying in a company or family trust and still need to set this up?
- Building report
- Lawyer's fees
- Property Valuer's fees
- Costs of moving - i.e. paying for house movers, school fees, change of uniforms
- Utilities - i.e. the cost of disconnecting / reconnecting your internet, phone, Sky TV etc
It can seem like a lot to think about, so as Mortgage Advisers we are more than happy to sit down with you, take stock and help make budgeting for your new home easy.
Ready to look at getting a mortgage?
That's great, you can go forward knowing you are prepared for the real costs and responsibilities that go with home ownership! And don't worry, being a homeowner isn't all boring responsibilities - it can be a lot of fun and very rewarding.
If you have any questions about getting a mortgage, any one of our Mortgage Advisers will be happy to help make the process easy for you, and point out anything you might not know you don't know. For a no-obligation chat, contact us today.
You might also be interested in these articles:
- Saving for a home? Why you need to consider your KiwiSaver set-up
- Get your house sale-ready in 5 steps
An Adviser Disclosure Statement is available free and upon request.