So You Want To Buy A Home? Find Out How Much You Can Really Afford

Buying a home is exciting.

It’s a symbol of achievement, stability and creating a space you can truly call your own. But before you get swept away by the dreamy open houses and Pinterest-worthy kitchens, take a deep breath and ask yourself the crucial question: how much can I actually afford?

Crunching the numbers: Beyond the mortgage payment

Sure, the monthly mortgage payment is a big chunk of your housing expenses, but it’s not the only one. Here are some key factors to consider when calculating your realistic budget:

• Property taxes: These are charged by the State government and are based on the assessed value of your property.
• Council rates: All councils collect rates on property and they are based on the assessed value of your property.
• Homeowners insurance: This protects you financially in case of damage to your home or property. Get quotes from multiple insurance companies to compare rates.
• Utilities: Think electricity, water, gas and council rates. Research average costs in your desired neighbourhood and factor them into your budget.
• Maintenance and repairs: Owning a home means unexpected repairs and regular maintenance. Set aside a monthly buffer for things like general maintenance, malfunctioning appliances and yard upkeep.

Beyond the numbers: Consider your lifestyle

Remember, a house is more than just bricks and mortar. It’s a place to build memories, entertain friends and raise a family. So, while crunching the numbers is crucial, don’t forget to consider your lifestyle and long-term goals.

• Do you crave a vibrant city lifestyle or a peaceful suburban oasis?
• Are you planning to start a family soon? You might need to factor in additional bedrooms and school districts into your decision.
• Do you prioritise travel and experiences? A smaller, more affordable home might free up a budget for your wanderlust.

We’ve joined forces with Rise High Financial to present personalised solutions catering to the unique needs of every homeowner. Get in touch with the team today: https://risehigh.com.au/contact-us/.