Many of us get excited about owning our first home! However, we often find clients spend a lot of time preparing to buy and in turn forget to plan for their post settlement journey!
Today we thought it would be great to share a checklist that caters for a lifetime of property ownership; as loan repayments are not the only part to consider…
- Repayments and rate rises: Even if your loan is ‘interest only’ to begin with, think about when that period expires and factor in the extra costs and changes to your lifestyle you may need to make to prepare for that.
- Package and Account Fees: Remember to factor in is your annual fee, many lenders charge close to $400 a year on a packaged product, so take note of when this is due each year.
- Body Corporate, Water and Council Rates: These are usually charged quarterly, it is good practice to ask for a copy of the Body Corporations Sinking Fund report too, as this will give you an indication of what kind of levies will be charged for the year ahead.
- Insurance: Whether you are planning to rent out the property or live in it, building, contents or landlord’s insurance fees are all ongoing costs which should be factored in.
- Management charges on investment properties: Most Agents will quote you a percentage as commission they take to manage your property, which is normally somewhere between 6-10%. Agents also charge admin fees, tenancy preparation fees, lease renewal fees, postage, advertising, photos, letting fees…so make sure you get a full list of all potential charges before deciding who to use.
- Maintenance: Repairs, cleaning, gardening, pest control…whatever needs regular attention should be included in your ongoing budget.
- Commuting: If you plan to live in your new purchase, think about the extra costs you may incur to get to work such as extra fuel, tolls and parking.
- Cost of living: When you locate to another area you might find a difference in the cost of goods and services, research these changes for any regular expenses such as food, entertainment, hobbies, childcare and schooling.
- Set up costs: Removals, new furniture, connection fees…make sure you allow some surplus cash to get yourself re-settled again.
At Peasy we like to prepare our customers as best we can, after all Settlement isn’t the end of the road! We believe that adapting to future changes with continuous improvement is the key to long-term success; meaning we too want you to benefit from a service that offers ongoing results!