The ownership costs buyers should compare before choosing a home

When buyers compare homes, the purchase price is only one part of the decision. The ongoing cost of running and maintaining a property can affect household comfort, borrowing capacity and the amount of cash that remains after settlement.

Start by estimating the regular costs that apply to the property. These may include council rates, water charges, electricity, gas, internet, insurance and, where relevant, strata or community-title contributions. Ask the selling agent for recent details where available, but confirm important figures independently before relying on them.

Maintenance deserves its own line in the budget. Look closely at the age and condition of the roof, gutters, plumbing, air-conditioning, hot-water system, fencing, retaining walls and gardens. A property that appears cheaper may require more spending after settlement, while a well-maintained home may provide a clearer picture of future costs.

Loan planning should include more than the proposed repayment. Moneysmart encourages borrowers to understand the full cost of a home loan and consider whether repayments remain manageable if circumstances change. Buyers should also allow for purchase costs, moving expenses, urgent repairs and a sensible cash buffer.

For apartments and townhouses, check whether owners corporation or strata contributions cover expected services and maintenance. For freestanding homes, ask about past repairs and inspect areas that are easy to overlook, such as drainage, external walls and access to service equipment. A building or pest inspection and qualified legal or conveyancing advice can help identify issues that are not obvious during an open home.

What this means for buyers

• Compare the likely annual ownership cost, not only the advertised price.
• Separate predictable bills from irregular maintenance and repair costs.
• Keep a cash buffer so the purchase does not leave the household overextended.

These checks are practical planning steps, not a substitute for personalised financial, legal or building advice. The right comparison will depend on the property, the buyer's circumstances and the advice of qualified professionals.

Sources

• NSW Government: Buying and selling property
• Australian Securities and Investments Commission Moneysmart: Home loans
• Australian Bureau of Statistics: Lending indicators