Becoming a homeowner is no easy task and at times you can get swept away by the dream of finally owning a residence.
It is important to not let yourself get lost in this dream, as the reality is that there are hidden costs. According to Private Property, a buyer needs to be aware of all the costs associated with buying a property and what they can afford to pay on a monthly basis.
They urged potential homeowners to consider the following monthly expenses when drawing their budgets …
Utility Fees
Monitor your consumption by making use of a prepaid system which allows you to pay upfront for electricity and carefully monitor your spending.
Rates, taxes and levies
- Rates cover services such as sewerage facilities, road maintenance, streetlight maintenance and refuse collection.
- Rate calculations are based on your property type, while your taxes are calculated against the value of your property.
- If you are buying a sectional title property such as a property in a complex or a flat, you will be charged levies. These are the costs involved in running the complex, such as limited building insurance coverage, repairs and maintenance.
Homeowner’s insurance
- Homeowner’s insurance is mandatory when you apply for your home loan as it covers your property against loss and structural damage.
- The monthly premium depends on the loan amount granted for your property and this can be included in your monthly bond repayments.
- There are many competitive options available, so you should shop around for an offer that best suits you.
- Homeowner’s insurance does not cover the contents of your home, so you will need to look at home contents insurance if you’d like to insure your possessions.
Private Property added that because of the economic decline in the country, the property market is turning into a buyer’s one. The company added that buying a property is something that should not be done in haste. It is better to buy a home you can keep for a while because if you sell too soon, you will not reap the rewards of that property.
