When people think of buying a home, they usually think of the purchase price. However, many hidden costs are involved in purchasing a home that can quickly hike up the total price, putting homebuyers in for sticker shock. Since the home buying process is filled with various steps to ensure that there aren’t any issues or surprises for both the buyer and seller, they’ll inevitably have to pay for such services like title search and conveyancing.

Knowing standard hidden costs will allow you to include them in your calculations, helping you budget better and avoid unexpected yet unavoidable expenses. Here are some of the main hidden costs involved in buying a house:

1. Home Maintenance and Repairs

If you’re purchasing a newly built home, then it is likely outfitted with energy-efficient technology, which means you won’t have to invest in home maintenance and repairs just yet. However, if you’ve bought an old home, then you’ll have to anticipate the cost of repairs, which can cause your total home investment price to skyrocket. Regardless of the newness of your home, you’ll have to set aside enough funds to take care of malfunctioning appliances or components.

To avoid this, you should check the warranties and guarantees for the furniture, devices, and features in your home. It helps to have their respective instruction guides, but you can also reference them online.

2. Utilities

Although you can take your current utility providers with you to your new home, keep in mind that you may not receive the same degree of service, especially if you’re relocating to an entirely new area. You’ll have to check the service provider’s availability in the area and any cost changes involved. 

3. Moving to Your New Home

Many people forget to factor in the costs of moving your possessions from your old place to your new home. The logistics of moving can be frustrating and messy, so it is vital to organise everything to avoid costly mistakes. If you are lucky enough to have friends and family willing to help you out, that can save you some money, although they’ll appreciate being paid in drinks or food. Alternatively, you can also hire a professional moving company, but keep in mind the cost and add it to your budget.

4. Landscaping

If you have a green thumb, you’re likely very excited about dressing up your yard and transforming it into your sanctuary. However, tidying up the space by investing in fencing, paving, and entertainment spaces can add thousands of dollars to your purchase price, so it’s important to account for these expenses in your homebuying budget.

Other Costs Involved

Apart from upfront costs like your mortgage payments, stamp duty, establishment fees, and lenders’ mortgage insurance, you’ll also have to prepare for other expenses that come with a new home. These include building and contents insurance, optional features like Internet and cable TV, cleaning and gardening, and council rates. 

Conclusion

Finding the home of your dreams is a satisfying and rewarding process, but it can be incredibly costly if you aren’t prepared for it. By accounting for these hidden costs, you can adjust your budget accordingly and enjoy your new home.
Bickell and Mackenzie is a team of conveyancing lawyers with additional specialisation in family law, wills and estate administration, and business sales. With over two decades of experience, we have a wealth of knowledge that will sort out all the details you need when buying a house. Contact us today to learn more about what we can do for you.