First-time Property Buyers Budget Essentials
We bring you first-time property buyers budget essentials to aid you in stepping on the property ladder with confidence.
Becoming a first-time property buyer is exciting and memorable, but can also become rather overwhelming due to the financial pressures it can create. Considering that this will likely be one of the largest purchases of your life, it’s important to draw up a budget and have a clear understanding of your financial situation.
One of the greatest pieces of advice you can receive when buying your first home is to choose a property that costs significantly less than your maximum loan approval amount.
Why is this? Because homeownership is about much more than just being able to make bond repayments. When it comes to property purchase costs, there are a number of other expenses that need to be taken into account. It’s important to make sure that you’ll be able to afford these homeowner costs each month.
Let’s discuss some property buyers budget essentials to keep in mind while house hunting:
Municipal Property Tax
While this amount will vary based on the city, suburb and location, it’s important that you remember to budget for municipal property tax. Before buying a property, ask the current owners or the estate agent what the local authority is charging, so that you can cater for it on your budget.
This amount is typically stated separately on the municipal account for services such as water and electricity. If the amount is considerably high, you may want to consider house hunting in an area that offers lower rates, allowing you to rather pay an additional amount off your bond each month.
Home Owners Cover (HOC)
Many first-time property buyers forget that if you take out a home loan, the lender will insist that you have homeowner’s insurance for the duration of the loan.
HOC Insurance provides for the repair or replacement of your home in the event that it’s damaged or destroyed by floods, fire, wind or other natural disasters.
Maintenance and Repairs
While new homes, especially those at Bardale Village, need no work or repairs, it’s important to budget a monthly amount towards a savings account so that you are fully prepared in the case of an emergency.
Seeing as nothing mechanical lasts forever, it’s important and useful to have some cash in reserve for when you need it. Whether you need an electrician to install an extra security light, urgently require a plumber or simply need to replace a burned-out lightbulb, budgeting for these situations will help you rest easy, knowing that your home and family are covered.
Quality Houses for Sale at Bardale Village
Buying your first property can be scary, but having a clear understanding of what to expect allows you to tackle each obstacle with ease.
Bardale Village strives to provide affordable living options to first-time property buyers and seasoned homeowners alike.
Contact us today if you have any questions. Our friendly professionals have you covered.