We all know that buying a new home is not just paying what’s on the tag. There are lots of hidden costs of buying a house to consider. Being aware of these costs and adding them into your calculations will help you avoid the unexpected out of pocket expenses that come with buying a property.
Keep reading to learn more about the hidden costs, and if you have any questions, please don’t hesitate to get in contact with our team of conveyancers.
Overview:
- What are the hidden costs of buying a house?
- What are other hidden costs of buying a house?
- What are the upfront costs of buying a home?
What are the hidden costs of buying a house?
Experienced and trusted in the property industry for more than 45 years, Eckermann Conveyancers have seen the additions that sometimes surprise our clients – especially those who are first home buyers . We’ve prepared a list of some of the costs associated with home purchases so that you can be prepared and budget accordingly.
1. Utilities
New place, new connections. Yes, you can take along your existing utility providers to your new place if you want. But did you know that not all services will work exactly as they used to work in your previous house? Take NBN for example – it’s important to check availability of the service in your new area.
Research utilities in advance and take into consideration the services and the costs for each before you move in. Following feedback from our clients, Eckermann Conveyancers created the exclusive, Eckermann Select Service. Through this service, we can help you arrange and manage services like electricity and gas connections, broadband, Pay TV, insurance and regular home maintenance.
2. Landscaping and yard work
Designing the outdoor canvas of your new home is an exciting task and it can have a huge impact on the look and feel of your new home and your lifestyle. Take care though – replacing fencing, creating entertainment and play spaces, paving or just a general tidy can all add significant expenses on top of your purchase price – so be prepared.
3. Home Maintenance and repairs
A newly built home has the benefit of new, perfectly fitted and energy efficient utility technology, but new things can still break down. Make sure you’re across warranties and guarantees for the items in your home. Fortunately, most instruction guides are available online but it’s always handy to have hard copies around (just in case it’s your modem that’s broken!).
4. Moving costs
If you’re undertaking the build yourself, the focus is often on getting the property to a habitable stage that you might overlook the fact that you need to organise your move. You might be lucky enough to have family and friends who can help you out or you might need to engage a professional removalist to get your gear into your new place – so make sure you add this to your budget.
What are other hidden costs of buying a house?
Be prepared for regular outgoings. It’s not just the mortgage payments that need to be met, though for many of us, they constitute the biggest chunk out of our budget. Factoring those outgoings into your budget planner with some preparation time is much better than waiting to see how they come in and then trying to work out affordability. There are comparison websites that can help you understand the supply rates of different providers so you can choose one that fits your budget.
So, over and above your mortgage payments, transportation, food and other personal expenses, you can look forward to budgeting for:
- Electricity supply
- Gas supply
- Water and sewer rates
- Council rates
- Building and contents insurance
- Optional extras like cable TV and internet
- Cleaning and gardening
So, what are the upfront costs of buying a home?
Outside of what we’ve listed above, here are also some clear upfront costs of buying a home that can’t be forgotten. These are things like:
- Stamp duty (you can get a rough idea of what this may be by using the Revenue SA Stamp Duty Calculator)
- Lenders Mortgage insurance
- Establishment fees
Buying a property and securing a home loan can be tough, but if you engage Eckermann Conveyancers to take care of your transaction, you’ll have the opportunity to have our Eckermann Select Service team help you with making arrangements with these suppliers. We make sure you’re not shocked by any hidden costs of buying a house.
