Nothing can replace the satisfaction of a homeowner who has reached that point in life when they have a house they can call their own. But the process that led to such point is neither easy nor simple. And those who are planning to buy their own house should understand that there are many costs involved and not just the purchasing price of the house.
Usually sellers require at least 3% - 5% of the purchase price as deposit.
Some may consider building & pest inspections as additional expense which can be skipped. But in reality having these inspections will be for your security and peace of mind. You don’t want to be paying for a house which will give you headaches when you are already living in there because of the many repair works that didn't surface during your first inspection. A professional home inspection will make sure that all possible sources or points of repair works are inspected and cleared before making the final payment.
If you are contemplating about finally owning a home, you need to decide on the financing option that will be suitable for your financial situation. You can choose from variable and fixed rates. Interest rates which are low at this time are not guaranteed to stay low permanently. When rates go high, it will have a huge impact on mortgages. It is best to consult with a financial advisor so you would have an idea of how much you have to allocate for your mortgage repayments.
Insurance, Taxes and Utilities
Apart from the mortgage, a home buyer should have to be concerned with paying the property taxes and homeowner’s insurance. You have to check if insurance is included in the monthly mortgage bill. In addition, you will also have to pay for the utilities such as water, energy (electricity or gas), and rates.
Homeowner’s Association Dues
If your home is part of a body corporate, quarterly fees will be collected from all homeowners. This amount should take care of the upkeep of the surroundings within the village or community or construction of common amenities such as additional playground for the children or a park for the elderly, etc.
If your house has a lawn or garden or a pond or fountain, you would need to get someone for the regular upkeep of the property, if you cannot spare weekends to do those chores. The advantage of having a regular maintenance schedule for the house is to avoid having to deal with major repair issues which can be costlier in the long run. You need to allocate a budget for the regular upkeep and a contingency fund for emergency repairs.
You will be bringing in some stuff from your old apartment or house and into the new home. Hence, you need to set aside a budget for a moving company to bring all your belongings to the new abode.
There could be other expenses or costs that you will have to budget in. Make a list of all possible expenses a homeowner will incur including the recurring bills so that you can calculate if after making the final payment for the house, you will have enough to cover the recurring expenses. And that’s not to forget that there are unexpected expenses that may come up along the way.