Things You Should Know Before Becoming... a Homeowner

We recently shared our top things to know before becoming a landlord. In today’s blog, C&G look at what it takes to go from tenant to homeowner, and break down the need-to-knows about owning a property for the first time.

Maintenance is Your Responsibility

When you’re a tenant, should anything go wrong with your leased property you’re in the comfortable position of calling on your property manager to have the matter sorted. A quick call to your property manager – and remediating the matter is their responsibility. This isn’t so when you’re a homeowner. Property maintenance – both selecting contractors, and paying for upkeep – is your responsibility. Try to keep a ‘rainy day’ fund for unexpected plumbing or electrical issues, as paying to rectify faults can be costly.

Late Payments Aren’t OK

While you may have paid your rent a day or two late in the past, the same behavior won’t fly with banks when you have a mortgage. Expect late payment fees and adjustments to promotional interest rates in some cases.

Insurance is Important

Much like property maintenance, insurance responsibilities are entirely those of the homeowner. Building and contents insurance protects your home and belongings from theft or damage - no matter how careful you are, taking out these policies on your home is essential. If you’re in an apartment, floods or fires in other apartments can pose a risk to your property and possessions, so remember to think of every eventuality when you take out your insurances.

Interest Rates May Rise and Fall

While your monthly rent will rise occasionally, your mortgage repayments have the potential to rise or fall each month. Your repayment is calculated based on interest rates, so unless you’re on a fixed rate loan, your monthly dues may rise or fall without warning. Consider fixing all or part of your loan, and paying down extra amounts from your principal when you can.

There Are Fees Beyond Your Mortgage

While you’ll likely have paid electricity and gas bills as a tenant, there are more fees associated with homeownership than utilities alone. Council rates, owners’ corporation fees and lender admin fees will all add to your monthly outgoings. Prepare a detailed budget before committing to purchasing to make sure you can afford the responsibilities homeownership entails.

While homeownership may feel like a challenge, it remains achievable with the right savings discipline and a commitment to conscious spending. If you’re looking to buy in the Bayside area, Chisholm & Gamon represent the best real estate in the south. Browse our current listings here.

Elwood

03 9531 1245
90 Ormond Road,
Elwood Vic 3184
View suburb profile

Black Rock

03 9589 3133
3 Bluff Road,
Black Rock Vic 3193
View suburb profile

Port Melbourne

03 9646 4444
1/103D Bay Street,
Port Melbourne Vic 3207
View suburb profile

Mount Martha

03 5974 6888
7A Bay Road
Mount Martha 3934
View suburb profile

Meet the C&G team