There's nothing quite like the hunt for your first home. From your initial research to those first tentative steps through an open house, it's easy to get swept up in the excitement of what the future might look like.

But have you stopped to consider what you want your future to look like? Or what you really want from a home?

A dream home is more than a place to live. It should also let you to live the life you want.

Some people are happy to pour their savings into the most expensive home they can afford. Others might want to spend less so they can travel more or set aside savings for school fees and other expenses. 

What are some lifestyle considerations?

Future earnings

Does your career offer a well-trodden path to financial security? Can you confidently predict what you'll be earning in five or ten years?

If so, you might feel comfortable spending more on a home earlier in life than someone whose career is likely to be more ‘zigzag’.

Life isn't a race and neither is home ownership. Go at your own pace and avoid overstretching.

Current or future dependents

Are kids on the cards? If yes, are you thinking about private or public schooling?

Even if you’re single, it’s worth considering future you. For example, you may want to spend more to live in an area zoned for a great public school if you think you could eventually be raising a family in the area.

Know thyself

Not to get too deep here, but being honest with yourself about your income, goals and interests can help put things in perspective.

What percentage of your income are you comfortable with spending on home loan repayments? Do you want to carefully budget to help afford your dream home? Or would you be happier with a less expensive home that ticks the boxes but gives you more flexibility for other expenses?

There's no one-size-fits-all when it comes to home ownership. It’s all about what’s right for you.

What are the potential recurring homeownership costs?

If you’ve been a renter, you may never have had to call in a plumber or pay a home insurance premium. Here are some of the recurring homeownership costs you may need to factor into your budget:

Home loan repayments

Most homeowners need to take out a home loan. Suncorp Bank’s loan repayment calculator could help you take a first step towards working out what your repayments might look like, depending on the amount, type and term of your loan.

Check out Suncorp Bank’s home loan calculators

Home and contents insurance

Fire, floods, storms and theft – we’ve seen how devastating they can be. As a homeowner, it makes sense to consider what protection you may need, as well as to understand what insurance may be required. Lenders often require mortgage holders to maintain adequate insurance coverage during the term of the loan. 

Council rates

Council rates cover the cost of local services and infrastructure. When you inspect a home, ask the seller’s agent for information about the property’s assessed rates and consider factoring them into your overall budget.

Utilities

Your utilities – electricity, internet, gas and water – may vary in cost depending on your property's location and energy efficiency, as well as your household size and energy usage patterns. Local real estate agents may be able to help you get a sense of what you can expect.

Buying a property with features such as solar panels/batteries and water tanks could potentially help reduce your ongoing utilities costs. 

Body corporate fees

When you buy an apartment or townhouse, you’re likely to be joining the building’s ‘body corporate’ (also known as the ‘owners corporation’). The body corporate often looks after the building’s common areas, such as lobbies, walkways, roofs and gardens, organising cleaning, gardening and general maintenance, but this is different for every property.

Often, the swankier your apartment complex, the higher the fees. Check the fees you’ll pay on your unit. When it comes to choosing where to buy, think about what facilities you really need. A luxe spa could be great, but not if it pushes your budget into a different kind of hot water.

General maintenance

Bought a home? Congrats – there'll be no more emailing your rental agent about leaking pipes, broken heaters or spreading mould. But unless the repairs are covered by a body corporate, you'll generally need to take on these costs yourself.

There's no set rule for how much to budget for general maintenance. We like to think that nothing will go wrong, but your future self will thank you for being cautious. Before making an offer on a property, it can make sense to get a building and pest inspection. Learn more about the inspections you might need.

What about one-off home buying costs?

If it’s your first home, you’re probably learning that buying a home isn’t just a long-term expense. Here are some of the one-off costs that many home buyers need to factor into their budgets:

Legal and conveyancing fees

Conveyancing is the process of transferring a property's ownership. A conveyancer or solicitor can help you prepare and lodge legal documents, calculate rates and taxes, order property searches and represent you during interactions with a bank or vendor.

While conveyancing or legal fees can set you back anywhere from a few hundred to several thousand dollars, having a professional guide you through the home buying process can potentially minimise complications – and stress.

Lenders mortgage insurance

If you don’t have a 20% deposit, you may need to pay lenders mortgage insurance (LMI). This insurance protects your lender in case you can’t meet your loan repayments and default on the loan. Talk to your lender about whether you’ll need to pay LMI and how it works. In many cases, you can have it added to your mortgage principal.

Stamp duty

Stamp duty (also known as land transfer duty), is applied to most property purchases in Australia. Use Suncorp Bank’s stamp duty calculator to help estimate how much you might need to pay.

Australia’s states and territories have different grants and/or concession schemes for eligible first home buyers. These change from time to time and may or may not apply to you based on your circumstances and the property you’re buying. Learn more about First Home Owners Grants and stamp duty concessions in your state. If eligible, you could potentially save thousands.

Get expert advice

When it comes to working out your options, talking to an expert goes a long way. Suncorp Bank's lending experts are happy to answer your home lending questions. They’re available seven days a week and all consultations are 100% obligation-free. 

Talk to a home loan expert

Published 22 November 2024