Congratulations on your new home, mate! Having a house of your own is the best feeling in the world, isn’t it? You can finally do whatever you want without asking for permission. However, like many things in life, owning a house comes with its own set of responsibilities. If you’re feeling overwhelmed now, that’s perfectly normal. Many people feel the same after such a significant financial investment.
Fortunately, in this blog post, you will learn what you have to pay after buying a house in Australia, along with some practical and financial tips. But before all that, you must first learn what to do after buying a house and that is to…
Secure your property
It’s ironic that you need to throw away the keys to your property almost as soon as when you got them. The truth is, you can never be certain how many people still have keys to the old locks. Previous owners, real estate agents, contractors, or even jealous exes, who knows? It’s also wise to change your garage codes and secure all other access points immediately. If your home has an alarm system, consider the reconnection fees or switch to a new provider entirely.
If you’re tech-savvy, use this opportunity to upgrade. Consider smart locks, video doorbells, and and security cameras. These devices allow you to monitor your home from your smartphone. The best part is you can lock or unlock doors remotely. How cool is that?
Finally, introduce yourself to neighbours and local law enforcement. It’s a great way to make a good first impression. You need to know where the nearest police station is in case of an emergency anyway.
Now you move to the next of the things to do after buying a house…
Understand your mortgage details
If you’re like most people, you’ve probably bought your home with a mortgage loan. Pay attention now, no pun intended, because this is very important.
You must know your interest rate. That’s the percentage you’ll pay on top of the amount you’ve borrowed. For example, if you have a 5% interest rate on a $500,000 loan, you’ll be paying 5% of that loan amount in interest each year. Keep in mind that interest rates can be fixed or variable, which affects how your payments may change over time.
Additionally, look at your amortisation schedule. It breaks down each payment, showing how much goes towards paying off the loan (principal) and how much goes towards interest. This helps you see how your debt decreases over time. For instance, in the early years of your mortgage, a larger portion of your payment goes towards interest, while in later years, more goes towards the principal.
You should also be aware of your prepayment penalties and options for refinancing. You don’t have to necessarily worry about these, however.
Set up automatic payments
This means your bank will automatically transfer the mortgage amount from your account to your lender every month. It’s like setting up a direct debit for your gym membership, but for your mortgage. Automatic payments help you avoid missing a payment and can even get you a lower interest rate with some lenders. There is also another option…
Bi-weekly payment plans
Instead of paying your mortgage once a month, you pay half of it every two weeks. This method results in 26 half-payments a year, which equals 13 full payments instead of 12. For instance, if your monthly mortgage is $2,000, you’ll pay $1,000 every two weeks, making one extra full payment each year. This accelerated payment schedule can shorten a 30-year mortgage by several years and reduce the total amount of interest paid.
Plan for ongoing costs
Besides your mortgage, you also have the following expenditures to take care of. They’re on-going, mind you. This is what you have to pay after buying a house.
Property taxes (council rates) – These are an inevitable part of homeownership and vary depending on where you live and the value of your property. The nicer the neighbourhood, the higher the council rates;
Insurance premiums – Homeowners insurance is your safety net, in case disasters like floods or fires happen. Premiums vary depending on your coverage and location. We all know what the weather in Australia can be like, so don’t postpone this step;
Utility bills – You’re already familiar with monthly expenses for water, gas, electricity, and trash collection; no further explanation is needed;
HOA or strata fees – If you live in a community with a Homeowners Association (HOA) or a strata-managed property, you’ll have additional fees for amenities and maintenance. These fees cover shared amenities like pools, gyms, landscaping, security, and the upkeep of communal areas. The amount varies based on the location, size, and amenities of the community or building.
Now, to stay on top of these expenses, you need to:
Create a budget – Sit down and crunch the numbers. Make sure you’ve got a detailed budget that covers all these ongoing costs. And don’t forget to set aside some cash for emergencies. You never know when you might need it for unexpected repairs;
Track your expenses – Keep tabs on your spending. Google Sheets has some awesome templates that you can tweak to fit your needs. And if you’re not too good with that, you can find different apps for your phone that serve the same purpose;
Tax deductions – As a first-time homeowner, there are some potential tax deductions you might be eligible for. Take some time to explore these – they could save you a bundle come tax time.
Schedule maintenance and upgrades
When it comes to home maintenance and repairs, there’s a lot to consider now that you’re a homeowner. Schedule essential tasks like HVAC servicing to keep your heating and cooling systems running smoothly. Don’t forget about roof inspections, too. Catching any issues early can save you big bucks down the line.
In that line of thought, consider regular gutter cleaning. It will prevent clogs and water damage to your home’s foundation. Additionally, you should have regular pest control treatments too. They will keep your home free from termites, ants, and other pests. Don’t overlook landscaping maintenance either. Lawn mowing, tree and bush trimming, and garden bed upkeep are very important.
Another thing to put sme thought in is home upgrades. Consider them as value-adding upgrades and not about luxury. For instance, instead of opting for extravagant custom cabinets and high-end appliances in a kitchen remodel, upgrade to energy-efficient appliances that can save you money on utility bills. Similarly, when you decide to renovate your bathroom, prioritise functional improvements over luxury fixtures. Upgrade the plumbing fixtures, and install a water-saving toilet. It might not look as fancy, but it’s way more practical.
And let’s not forget the small, but essential regular procedures like home cleaning. Regular cleaning eliminates dust, allergens, and germs so you and your family are healthy. Once in a while you should also perform deep cleaning or have a professional company do it. Beyond that, you should still clean your windows, regularly mow your lawn and have after builders cleaning for removing construction debris and dust after renovations. And always hire trusted handymen for any renovations.
You’re a homeowner now so start thinking and acting like one. And once again, congratulations because you deserve it.
Takeaways
Change your locks right after the property becomes officially yours;
Become familiar with your interest rate and amortisation schedule. Consider setting up automatic payments or bi-weekly payment plans for convenience;
Property taxes, insurance premiums, utility bills, and HOA fees are ongoing expenses you’ll need to budget for;
Budget for regular maintenance tasks like HVAC servicing and roof inspections. Better to have this before something goes wrong and not afterwards;
When planning upgrades, prioritise value-added decisions that align with your long-term goals and not something that just looks fancy;
Always keep your home clean.
Start fresh by giving your new house a good clean.
A team of professional cleaners is ready to assist you.
If this your first time buying a home? Share your thoughts and tips in the comments below!
