Often first home buyers think that the spending journey is over when the funds are transferred to the seller of their home.

Unfortunately, that is far from the truth. There are 5 unexpected costs that often catch them out…

1: Closing Costs

A lot of people have involvement in the sale of a home and they all need to be paid. Lawyers fees, realtor’s commissions, bank fees, and taxes could add thousands onto the cost of buying a home.

2: Home Maintenance

If something goes wrong on the property, it is the new homeowner’s responsibility to get it fixed. This can be anything from a leaky tap to sagging foundations. It is important to be prepared for ongoing maintenance costs and have a plan to pay for them.

3: Taxes and Rates

There may be local taxes or land rate payments due. depending on the local government. It is important to investigate what these might be before signing on the dotted line. With mortgage payments to consider, it could make the cost of living unmanageable.

4: Utility Bills

Buying the house is just the first step, power, phone, gas and internet all still need to be paid for. Consulting the neighbours for an idea of average utilities costs will help with budgeting.

5: Insurance

When taking out a mortgage, home insurance will be a requirement. That will cover off the property itself, but probably not the contents, so separate insurance will be needed for contents.

Research, research, research is the key to discovering how these costs might affect overall living costs and if they might make home ownership out of financial reach.