Friends With Money #264: The real cost of home ownership
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Homeowner horror: The hidden costs that could sink your budget
What are the real, often-overlooked costs of owning a home in Australia, and how can buyers avoid nasty surprises?
Owning a home is much more expensive than just paying the purchase price.
According to property writer Georgia Madden, new homeowners face steep mortgage interest, rising insurance premiums, energy bills, maintenance, council rates and, if buying an apartment, strata fees and surprise levies.
Many underestimate costs such as rebuilding insurance, ongoing repairs and the impact of interest rate rises. Smart strategies include reviewing insurance annually, fixing small problems early and checking apartment sinking funds before buying.
For first-home buyers and anyone budgeting for a home, missing these hidden costs can lead to financial stress, unexpected bills and even the risk of losing the asset.
Understanding the full picture means you can plan, save and protect your investment, rather than being caught out by a "budget sinkhole".
Episode timestamps:
01:31 Mortgage breakdown: interest vs equity
02:46 Insurance: costs and common mistakes
03:59 Energy bills and efficiency tips
04:55 Solar: upfront costs and payback
05:45 Maintenance: how much to set aside
06:51 Hidden repair costs: plumbing, wiring, roofing
07:51 Council rates and water charges
08:37 Strata fees and apartment levies
09:47 Cautionary tales and advice for buyers
10:16 Wrap-up and where to find more info
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Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.
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