Buying your first home is one of the most exciting times of your life. But it can also be daunting and stressful, not least when it comes to managing the costs involved. We all know that purchasing a property is a significant outlay. According to the Australian Bureau of Statistics, the average house price is just over $933,000. However, there are several other costs for first home buyers that are easy to forget. All of which can quickly add up!
Here are 9 costs commonly overlooked by first home buyers to be aware of.
9 unexpected costs for first home buyers
1. Home Inspection Fees
Paying for a home inspection is essential when buying any property; however, it’s a cost many first home buyers aren’t aware of! The cost can run anywhere from $300 to $600 or more, depending on the size of the home and the suburb you intend to move into.
A home inspection is an important step in the home-buying process because it allows you to check for critical issues in the property. These could be structural problems or pest damage, which could cost you a lot more later on.
2. Legal fees and stamp duty costs
When you’re getting ready to buy a home, it’s important to consider the legal fees and closing costs involved. These fees usually include solicitor fees, title insurance, and land searches, which can amount to 2% to 5% of the purchase price of your home.
While that doesn’t sound like much in those terms, on a $600,000 home, that could mean an extra $12,000 to $30,000, depending on the work your conveyancing solicitor will do for you. For this reason, you should ask for a fully itemised quote for the work they will do for you before engaging their services.
3. Moving expenses
Moving into your new home is not cheap at the best of times. And costs are particularly stretched for first home buyers. These costs escalate if you’re relocating to a new city or state. You need to account for various costs, such as hiring removalists or renting a truck, buying packing supplies, and even temporary storage. This can range from a few hundred to several thousand dollars, depending on how much you own and how far you’re going.
4. Install or repair heating and air-con
Australia is a hot country, but parts of it can get very cold in the winter. Subsequently, if your new home does not have an air conditioning or heating system, you may want to install one. It is best to find a system that operates as efficiently as possible, as this will save you money on electricity costs over time. If your new home already has a system installed, it’s worth getting the unit serviced when you move in to clear out any nasties. Alliance Climate Control air con repair is one such service in Sydney that can ensure your air con is working as effectively as possible.
5. Furniture and home decor
If you are moving from a smaller property to a larger home, you may need to buy additional furniture to fill the extra space. This could include purchasing items such as beds, desks, and blinds. To avoid financial strain in the short term, consider shopping at thrift stores or online marketplaces until you can afford the long-term purchases you desire.
6. Unexpected repairs
Unfortunately, unexpected repairs are almost inevitable, even if you have performed a home inspection. This could be anything from a leaky roof and broken cupboard doors to an issue with the plumbing or damage to the skirting boards. Therefore, it is essential to have a financial cushion in place for these surprise costs, as you will want to keep on top of the repairs to ensure your home stays in good condition.
7. Pest control
Most people do not automatically think of pest issues when buying a home. But they can pop up unexpectedly, especially if your property is in a bush or rural area. If left to their own devices, termites, rodents, and insects can cause severe damage to your home over time. Therefore, consider budgeting for professional services to carry out pest control measures to protect your home.
8. Security
We all want to be safe in our homes, so when purchasing your first property, you might want to take steps to secure it. This could involve anything from installing chains and extra door locks to installing motion sensor lights or more advanced CCTV security systems. Depending on what you use, everything comes at a cost you will need to budget for.
9. Landscaping
It’s important to not only focus on your new home, but also pay attention to the outdoor space. Overgrown grass, thick shrubbery, and piles of debris could attract snakes or vermin. And they also don’t look great! Therefore, you may want to allocate some money to tidy up your front and/or back garden and plant new plants.
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