What Are The Costs of Owning a Home?

Today we go through all the ongoing costs of owning a home, including a few that you might have forgotten from your budget!
00:00 What Are The Costs of Owning a Home?
00:44 1. Insurance
01:56 2. Interest
02:37 3. Council Rates
03:17 4. Bank Fees
03:51 5. Strata Fees
05:03 6. Maintenance
05:47 7. Water Rates
06:35 8. Pest Management
07:16 9. Renovations
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Next steps and settling your first home
Our team here at Hunter Galloway is here to help you buy a home in Brisbane. Nathan & Joshua Vecchio are Senior Mortgage brokers who specialise in making your home journey easy.
Unlike other mortgage brokers who are just one person operators, we have an entire team of experts to help make your home loan journey as simple as possible.
If you want to get started, please get in touch and we can book a time that suits you - either a phone call information session or a face to face meeting (which doesn’t cost anything for you).
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There’s plenty of advice out there on what you need to watch out for as a homeowner and the cost of buying a house. It starts off slow…a water rates payment here and there, followed by some accountancy fees. But it’s easy to get scared once all the costs of owning a home start to snowball. So, what just are the ongoing costs of owning a home, and how can you properly budget for them as you plan to purchase your first home or your next investment property?
Insurance
The type and extent of insurance you take out is going to depend on your financial capabilities as well as the location of the property. You would be unwise, as a property investor or homeowner, to not get some form of landlords/homeowners insurance to cover you from fire, theft, intentional damage, storm damage etc. In Landlord’s insurance: what to know, we detail some of the misconceptions about insurance and point out what you should look out for when taking out insurance.
For basic home insurance, expect to pay a minimum of $600 per annum. Each year, you should have another look at your policy, see what else is out there and get your provider to match that. All it takes is a conversation with them. If they can’t help you, move on.
Strata fees
Strata levies or fees can range depending on the size of your building but can include water rates within the cost. Multi-million dollar apartments in high rises can attract staggering strata fees in the tens of thousands per annum, while smaller apartment buildings may see you pay somewhere around $4000-$6000 per annum.
Interest
This is the interest on your home loan. You may choose to take out an interest-only loan, however banks may not favour this option if you cannot show that you have the capability to eventually start paying off the principles loan.
Repairs
This is a hard area to predict and budget for. You never know when a tap is going to burst, an air conditioner is going to pack up and die or any of the myriad of things that need attention within a home. Prepare to spend at least .5%-1% of the value of the home per year towards ongoing maintenance costs. Acting quickly on issues that arise will save you in the long run.
Bank fees
A 2016 report on bank fees highlighted that households spend on average up to $500 on bank fees per year. As a potential first time home buyer, it may be difficult to reduce your banking fees that are associated with your home loan, but there are banks out there (such as ING) that don’t have banking fees associated with running an account with them and limiting or even eliminating the use of a credit card is a quick and easy way to reduce your banking fees.
Council rates
Councils charge homeowners rates so that they can provide particular services (such as rubbish collection) and build infrastructure in the local area. Average council rates lie somewhere between $1600-$1800, per annum.
DISCLAIMER:
This video offers no Legal, Financial and Taxation advice, and the information contained is general and does not take into account your personal situation. The Listener acknowledges, consents and agrees to the viewing of the content presented on the Channel is subject to the full Disclaimer (below) and agrees to be unconditionally bound by this Disclaimer.
Full Disclaimer here - www.huntergalloway.com.au/you...

[@MortgageBrokerAustralia]

For more free resources and tools check out www.huntergalloway.com.au/resources/

[@paulsaifeeahsan7240]

You guys are awsome. Really useful information, thank you so much!

[@MortgageBrokerAustralia]

Our pleasure!

[@GuidedInvestor]

Good work fellas, comprehensive as always 👍

[@MortgageBrokerAustralia]

Thanks mate! Appreciate it. Cheers, Jayden.

[@panditinaustralia7550]

Another great video guys keep up the good work hope to meet you in brisbane when i get there

[@MortgageBrokerAustralia]

Thanks Anil you're too kind! Definitely hit us up if you're looking to buy a place. Cheers, Jayden.

[@brendancolley7353]

Hey boys love the content and super helpful for people. Most of these costs I got the pleasure of finding out about after I bought my first property 😂.. rates and insurance and interest I expected but costs like water supply and pest management were not on my radar.

[@MortgageBrokerAustralia]

Thanks for watching Brendan, great feedback and thanks for sharing!

[@PaulDickson7]

Home Ownership sounds like a life sentence in prison

[@MortgageBrokerAustralia]

Hey Paul, haha yeah I guess 30 years for a mortgage or a life sentence in prison! One is a little nicer than the other haha! Cheers, Jayden.

[@cathyd9897]

Hi guys, been loving all the videos! Has helped heaps as I’m in the process of buying my first property with my partner. I could be contributing 100% of the deposit and would love some advice on how I keep myself protected in a case that the relationship comes to an end. I would like the deposit back in my account and decide the rest of the money 50/50. Would you recommend seeing a lawyer? Or is there a cost efficient way to write my own Binding Financial Agreement. Thank you for your time!

[@MortgageBrokerAustralia]

Hey Cathy, thanks so much for checking out the videos! Probably best to chat to a lawyer to set up a binding financial agreement (basically a pre nup) to set out what happens if anything goes wrong. This isn't something we get involved with, but would be worth looking into - also after you buy a place its worth getting your will and insurances reviewed/updated as your financial position has changed. Cheers, Jayden.

[@waikurat7615]

How much does stamp duty cost? Can you make a vid of this.

[@MortgageBrokerAustralia]

Hey mate, it is different in each state and also changes if you are a first home buyer - you can check out the calculator here www.huntergalloway.com.au/stamp-duty-calculator-queensland/

[@chillhopworld]

Hahaha, owning is H E L L.

[@MortgageBrokerAustralia]

Thanks for watching