Regardless of whether it is a unit in Fairfield or a home in Bella Vista, taking the step from renting to owning your own home is a giant one, involving not only an increased level of responsibility but also an increase in expenses. As Mortgage Brokers, we have a unique opportunity to understand the different costs and expenses that can be involved in owning a property.
The following are just some of the extra expenses you might need to think about and budget for:
Local Council rates
Local Councils have the ability to levy a rate to be paid annually or in installments. This rate covers the expenses incurred by Local Council providing services to the community, ranging from garbage collection to the provision of libraries and other community facilities. Local Council rates can cost anywhere from a few hundred dollars up to thousands of dollars, depending on the value of the property that you own and the independent policies of the Local Council in which the property is situated.
Up until now, you may have only had to pay for the water that you have been using. You will also need to take into account the extra cost of funding the connection to the water and sewage system often referred to as service fees.
If you live in a block of apartments or townhouses, then you will be charged strata levies. Strata levies will vary depending on the size of your unit and the common property facilities available, such as pools, elevators and gyms.
It is important that you protect your home against risks like fire and storm. We recommend that you speak with an Insurance Broker to discuss insurance options which will adequately cover the risk of damage to your home.