If you’re feeling confident about your deposit and mortgage repayments then your next step would be to prepare for the extra expenses associated with owning a whare. These can include:
🔹 Council rates – Every homeowner pays these annually for things like rubbish collection, water supply and community facilities. You can pay annually, monthly, fortnightly or weekly with most councils. These can be big bills so set up a system that will work for you.
🔹 Insurance – You’ll need home insurance on your new purchase before a bank will lend to you. You can get a quote from your current provider or reach out to a new one to compare costs. You also might want to protect your home and contents with a separate insurance policy. Some banks may also ask for evidence that the loan is secured with a policy like life or income protection insurance.
🔹 Repairs and maintenance – A whare needs to be looked after—who will pay when the hot water cylinder breaks? You will need to factor in larger costs and smaller maintenance bills too. If you buy a brand new whare you might get a builders guarantee which can cover your whare for 5 or 10 years.
🔹 Power and utilities – electricity, internet, all the little bills to keep your whare up and running can add up too.
Many first-time homeowners will focus on getting the keys but forget about these ongoing costs. By preparing for all the extra (and just as important) expenses, you’ll get yourself and the whānau a step ahead.
What can you do right now?
🔹 Make a budget for home ownership. Add in columns for rates and property repairs to see if you’re financially ready or you need to adjust the budget/savings plan.
🔹 Check the Council website/call the council for the valuation and annual rates for a property you’re interested in and call your insurer and get a quote.
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