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 a 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 strata corporation, which is a non-profit, legal entity that governs an individual residential community or a block of apartments and condominiums.
Its directors are elected by the residents. It’s a smart idea to get involved so you have a voice 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 new owners.
Here are a few other aspects of ownership that first-time 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.
Need to play nice – Some young owners mention the importance of keeping on good terms with neighbours. Falling out with those on the other side of the fence, or down the corridor, can sour your homeownership experience.
Bills start appearing – Envelopes with little windows start appearing in the postbox – 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 a 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 owners are often caught out by the need to know how to fix problems, and how stuff in their home 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.