Buying your first home is a big step, but it’s also a rewarding one. By understanding the hidden costs and planning ahead, you’ll set yourself up for success.
SO, YOU’VE BEEN FLIPPING THROUGH real estate listings, dreaming about your dream abode and considering whether now is the right time to make that leap into home ownership?
Buying your first home is an exciting milestone — but it’s also a huge commitment.
Sure, you’ve done the maths on your deposit and mortgage repayments, but have you considered the less obvious costs that can catch new homeowners off-guard?
Unlike renting, where a quick call to your property manager usually sorts out any maintenance issues, homeownership leaves all the responsibilities in your hands.
From leaks to lawns, it’s all on you — and these expenses can add up fast if you’re not ready for them.
Don’t stress, though! We’ve put together this guide to help you understand what to expect and make sure you’re financially (and mentally) ready to embrace your first home.
1. Maintenance: Keeping your home functional
Owning a home isn’t just about making it look good; it’s about keeping it running smoothly.
As a renter, you’ve probably never given much thought to how things like plumbing, heating — or even your hot water system get fixed. But once you own a home, these responsibilities – and expenses – fall on you.
One of the most common – and often overlooked – areas to budget for is plumbing.
When pipes spring leaks, whether from a dripping tap or a blocked drain – or worse! – a burst pipe, you’ll want to have a trusted local plumber on speed dial.
Plumbing problems can arise at any time, and while some repairs are quick fixes, others can put a serious dent in your wallet.
Think about getting a few quotes from local plumbers before you even move in. Having someone reliable lined up can save you time and stress when things inevitably go wrong.
Another thing to keep in mind?
Many plumbing issues can be avoided through regular inspections or check-ups — like inspecting for leaks or ensuring your hot water system is working efficiently.
It may seem like an extra expense initially, but the investment is well worth it to save you from larger, more costly problems down the road.
2. Exterior upkeep: Don’t forget the gutters!
When you’re busy daydreaming about furniture layouts and colour schemes, it’s easy to forget about the less glamorous parts of owning a home — like how often, and when, to clean your gutters.
Okay, so it’s not the most thrilling of topics/tasks, but gutter cleaning is one of those tasks you just can’t ignore if you want to be a responsible homeowner.
Clogged gutters can lead to a range of problems — from water damage to structural issues.
And, while it’s easy to be tempted to tackle the job yourself, calling in professionals is often the safer and more efficient alternative. They’ll remove debris and assess whether your gutters are showing signs of wear and tear — checking that they remain in good condition for the future.
Neglecting your gutters can lead to costly repairs down the track.
For example, water overflowing from blocked gutters can seep into your walls or roof — potentially causing thousands of dollars in damage.
So, while professional gutter cleaning might feel like an extra expense, it’s actually a smart investment in the longevity of your home.
Pro Tip: Schedule gutter cleaning at least twice a year, especially after the storm season or during autumn when leaves are falling.
(Image via Eric Schmuttenmaer | Flickr)
3. Insurance: Protecting your investment
If you think renters’ insurance is a pain, just wait until you’re on the hook for an entire house!
Home insurance is an absolute must when you buy a property — and, it’s not just about protecting your belongings.
A good policy will include coverage for your home’s structure, and permanent fixtures as well as legal liability in case somebody is injured on your property.
That said, insurance is not one size fits all.
The cost will depend on factors like the location of your home, its age, and the materials it’s built from.
It’s worth taking the time to shop around and compare policies to find the best coverage for your needs.
And, be sure to consider supplemental policies, such as flood insurance, if you live in a high-risk area.
It’s easy to brush off insurance as ‘just another bill’ but the reality is that a good policy could save you tens of thousands of dollars if disaster strikes. Plus, some lenders won’t even approve your loan unless you have sufficient home insurance in place — so it’s not something you can forgo.
4. Landscaping and outdoor areas
When you move into your own home, you quickly realise that maintaining the outdoor spaces isn’t just about keeping things neat—it’s about protecting your investment.
Overgrown trees, for instance, can damage your roof or gutters and unmaintained lawns can create costly landscaping jobs.
One expense a lot of first-home buyers don’t account for is keeping outdoor areas under control. Whether you’re investing in equipment like a lawn mower or hiring a professional gardener for heavier jobs, the costs can quickly add up.
It’s worth coming up with a simple seasonal plan so you can get ahead of the curve. For example, pruning trees before storm season can deter branches from snapping and doing expensive damage.
If you’re keen on improving your home’s curb appeal, consider budgeting for upgrades like new plants, outdoor lighting, or even a small patio.
These touches not only make your home more livable but they can in fact add value to your property over time.
Just make sure you can manage it one project at a time — outdoor projects can spiral out of control if you take on too much all at once.
(Image via domidoba | Flickr)
5. Council rates and utility bills
As a renter, you’re probably used to covering utilities like electricity and water. But as a homeowner, you’ll also have to factor in council rates — an ongoing cost that covers services like rubbish collection, road maintenance, and local facilities.
These rates depend on where you live as well as the value of your property — so it’s worth checking out what average these are in your area before purchasing.
And, let’s not forget those utility bills.
Homeownership usually means more square footage to heat, cool and light up, so your energy expenses could rise sharply.
To help keep your bills from getting out of hand, consider using energy-efficient appliances and adding extra insulation. You might also want to look into installing solar panels, which can help reduce your energy costs over time — and boost your home’s value in the process.
6. The unexpected: Always have a buffer
No matter how well-laid your plans, surprises are sure to spring up. Perhaps the roof needs work after a major storm or the oven decides to conk out the week you move in.
Having an emergency fund set aside specifically for home-related expenses can make these moments a lot less stressful.
Some financial experts suggest saving 1-3% of your home’s value each year for maintenance and unexpected repairs.
For instance, if your home costs $500,000 that’s $5,000–$15,000 per year.
It might sound like a lot, but when you consider the cost of major repairs — like replacing a roof or fixing foundation issues — it’s a realistic figure.
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(Image via C. Kelly Roberts | Flickr)
Conclusion: Are you ready for home ownership?
Buying your first home is a big step, but it’s also a rewarding one. By understanding the hidden costs and planning ahead, you’ll set yourself up for success and avoid the stress of unexpected financial surprises.
So, before you go hunting for a house, examine your budget carefully and do the research so that you feel prepared to deal with all that owning a home entails.
Because let’s face it — there’s nothing quite like having a place to truly call your own. With the ability to paint your walls bright pink or the joy of mowing your very own lawn, homeownership makes every moment (and dollar) leading up to that point worth it.
All the best and happy house hunting!
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