The Ongoing Costs of Home Ownership in NSW
20th March, 2025
Home ownership in New South Wales (NSW) is an exciting milestone, but it comes with ongoing costs that can sometimes catch new homeowners off guard. From mortgage repayments to maintenance expenses, understanding these costs is key to managing your finances effectively.
Mortgage Repayments
One of the largest and most consistent costs of owning a home is the mortgage repayment. This payment is split between the principal (the loan itself) and interest (the cost of borrowing). Early in the loan term, a larger portion of your repayment goes toward interest. The interest is calculated daily based on the outstanding loan balance, and a monthly fee may apply.
If you have an offset account linked to your mortgage, it can reduce the interest you pay. However, keep in mind that offset accounts often come with a monthly fee.
Home and Contents Insurance
Home and contents insurance is essential for protecting your property and belongings. It covers the cost of repairing or rebuilding your home if it’s damaged or destroyed, and replacing stolen or damaged items. Premiums vary based on the value of your home, its location, and the level of coverage you select.
Helpful Tip: There are a few ways to reduce your home insurance premium. Installing security cameras, adding grills to your windows, or having a monitored house alarm system can often lower your premiums. Insurance companies see these measures as reducing the risk of theft or damage to your property, which could lead to discounts.
Utility Bills
As a homeowner, you’ll also need to pay for utilities like water, electricity, and gas. The cost of utilities will depend on your usage and the size of your home. Larger homes generally lead to higher utility costs, so it’s wise to regularly review your utility providers. Shopping around for a provider that suits your individual needs, along with considering energy-saving measures like efficient appliances, can help reduce these costs.
Council Rates
Council rates are another important ongoing cost. These fees fund local services such as road maintenance, garbage collection, and public infrastructure. The amount you pay depends on the value of your property and the local council area. Council rates are typically due quarterly, so it’s important to factor these into your budget.
Maintenance and Repairs
No home is immune to the occasional repair. Whether it’s fixing a leaking roof, plumbing issues, or servicing appliances, maintenance is an ongoing cost for homeowners. Unexpected repairs can sometimes be expensive, so it’s a good idea to save for emergencies.
Body Corporate Fees (for Strata Properties)
If you own a unit, townhouse, or apartment, you’ll likely have to pay body corporate fees. These fees cover the maintenance and insurance of common areas like gardens, elevators, and walkways. Body corporate fees can vary depending on the property’s size and amenities, so it’s crucial to know these costs when buying into a strata-managed property.
Special Considerations for Larger Properties
Owning a larger property or acreage means additional costs. These can include maintaining extensive gardens and lawns, as well as owning and operating equipment like tractors or ride-on mowers.
If your property has a pool, you’ll need to budget for regular maintenance and cleaning. Additionally, rural properties may require On-Site Sewage Management (OSSM) systems, which involve ongoing maintenance and servicing.
Larger properties also tend to have higher utility bills, especially for water and electricity, and may require more frequent repairs to fences, driveways, or access roads, particularly after bad weather.
If you’re ready to step into the property market and need expert guidance, we’re here to help. Our experienced team specialises in conveyancing and can support you every step of the way, ensuring your home buying experience is smooth and stress-free. Get in touch with us today to start your journey!
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