The day you own your first home is joyous – finally you’re on the property ladder with a place of your very own and the opportunity to build your wealth.
And after probably saving for years for your deposit, there should be no small measure of delighted relief that you’ve achieved your goal.
Of course, responsibilities come with owning property.
If you’ve bought an apartment, then you’ll be charged levies for the general upkeep of the property and its amenities.
You’ll learn to deal with – or be part of – a Homeowners Association (HOA), a non-profit, legal entity that governs individual residential communities, apartment blocks and condos.
Its directors are elected by the residents, and it’s a smart idea to get involved so you have a say in how and when the levies are spent on your building.
Those who’ve purchased a house will have a totally different experience.
All the costs associated with your new home are yours.
The amount you’ll need to spend on maintenance will align with the quality of the property you’ve purchased. The ongoing work and cost does come as a bit of a surprise to some.
Here are a few other aspects of ownership that new owners say caught them out.
Sense freedom – It may sound obvious, but many young buyers feel incredibly good about owning their own home – the sheer delight is more than they had anticipated. The idea that there’s no landlord to tell you how to live is totally liberating.
Mortgage relief – Being able to write off your mortgage costs against your taxes is a pleasant revelation to many new owners. Usually, it’s more than a rounding error for your personal finances.
Need to play nice – Some young owners mention the importance of keeping on good terms with neighbors. Falling out with those on the other side of the fence can sour your homeownership experience.
Bills start appearing – Envelopes with little windows start appearing in the mailbox – and some come demanding property taxes and insurance premiums. You need to keep track of these basic charges.
Real cost of maintenance – Some 32% of young buyers told a Zillow survey they were not prepared for this hit. Even the regularity with which the lawn needs a mow caught some out. Put a set amount in your budget to keep your home in good shape.
Self-schooling in DIY – First-time buyers are often caught out by the need to know how to fix problems, and how stuff works. You need to work out the HVAC, sprinkler system and appliances. When buying, ask the owner if they’ve kept the various instruction manuals.