In due time you will probably grow tired of paying rent.
It’s money that just disappears into someone else’s pocket, and all you get in return is a roof over your head for a month.
So you start saving, in the hopes of putting down an ample deposit for your first house.
But listen up, buddy, the cost of your house is not the only thing you will be paying for. It is imperative you realise the hidden costs associated with your “grown up” achievement, or else you might just be hanging on for dear life.
BusinessTech was kind enough to list the really important costs that you might not be aware of, just in case you’re going head first into buying a house.
Utility fees
You know that water and electricity you use every month? Maybe you have a landline, too. Well, you’re going to pay for using those services. Costs range from area to area as well as systems in place, like whether or not you have a prepaid meter.
Tip: Monitor your habits to curb costs.
Rates, taxes and levies
Those damn rates are pretty much like paying a monthly rental fee. Based on the value of your property, the rates of your house covers the cost of sewerage facilities, road and street light maintenance and refuse collection.
While rates are calculated according to your property type, taxes rely on the value of your property.
Levy fees apply to any property bought within a complex or building, such as a townhouse or a flat and include running costs for the complex, like insurance, repairs and general maintenance.
Tip: These costs are available to you before you buy, so do your research.
Homeowner’s insurance
Covering your property against loss and structural damage, homeowners insurance is mandatory when you apply for a home loan. Monthly premium depends on the loan amount and can be included in monthly bond repayments.
Tip: Shop around – competitive prices are out there.
Tip II: Homeowners insurance doesn’t cover what’s on the inside, so you need to get that, too.
So, are you going to buy or rent? That’s for you to do decide, but I would have to say if you have a stable income, get on that buying mission and invest in some property.
Good luck out there!
[source:businesstech]
