Becoming a homeowner is no easy task and at times you can get swept away by the dream of finally owning something.
Do not let yourself get lost in this dream, the reality is there are hidden costs and best you be aware of them.
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.
Private Property wants you to consider the following monthly expenses when drawing up your budget.
Utility Fees
- Monitor your consumption by making use of a prepaid system, allowing you to pay upfront for electricity and carefully monitor your spending.
- The cost of your internet will depend on the service provider you choose and the type of connection that you want.
Rates, taxes and levies
- Rates cover services such as sewerage facilities, road maintenance, street light 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
- Homeowners 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 they 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.
- Homeowners insurance does not cover the contents of your home, however, so you will need to look at home contents insurance if you’d like to insure your possessions.
- Owning your own home is exciting and liberating, and with planning, you can budget for these expenses and gain some control and confidence as you settle into your new house.
Private Property added that because of the economic decline in the country, market is turning into a buyer’s market. They 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.
