Planning to buy a home requires research, budgeting and planning. One of the things any home buyer should consider is, what are the ongoing or monthly costs associated with purchasing a home?
Firstly there will be once off, upfront costs which your estate agent or conveyancing attorney will go into detail with you. As a reminder these are:
Once off, Upfront Costs:
Firstly there will be once off, upfront costs which your estate agent or conveyancing attorney will go into detail with you. As a reminder these are:
- Legal fees, unless fully paid upfront (not always applicable if not part of the selling price);
- Transfer duty or VAT to the state (the attorney will let you know about this);
- Deeds Office fees and stamp duty; and
- A Once-off loan initiation fee
Once you have bought your home. There are going to be monthly ongoing costs and expenses that you should budget for.
Monthly Costs
- The monthly instalment, or home loan instalment, or bond repayment
- Home Owners Insurance;
- Home Content Insurance;
- Life insurance;
- Rates and Taxes;
- Municipal Service Fees;
- Body Corporate Levies (if living in a sectional title development) or Homeowners Association Levies (if living in a secure estate in a freehold property); and
- Gardening expenses.
Occasional Costs
Don’t forget about occasional costs such as:
- Excess costs in the event of an insurance claim;
- Maintenance costs; and
- Replacement of furniture and appliances over time.
The exact or estimate costs of all the different items listed above can be obtained from your various service providers.
Your estate agent and conveyancing attorney will provide you with details about the upfront costs. Depending on the value of the house, these costs can vary.
Before buying you can ask your estate agent about estimated rates and taxes for your house and levies, if applicable.
