What are the hidden costs of housing

Whether you have taken out a home loan and bought property or moved into your first rental, there are likely to be some ongoing costs. Managing these costs can be part and parcel of being independent with your money, and this could mean making sure you have everything covered.

But do you understand the full extent of the costs of housing? Let's take a look at some of the less obvious things you may have to pay to maintain the property you're living in. It could help you shave a few dollars off your everyday budget.

1. Electricity and gas

One of the first things you might sign up for with a new home is the gas and power. Gas can be one of the fastest-rising household costs¹, especially in the winter months. Consider shopping around different energy providers for the right plan; using power outside of peak hours could also help keep these costs down.

2. Water

While it’s possible that as a renter, the landlord carries the cost of water charges². in some cases you could be paying for your own water. Watching out for leaky plumbing, keeping showers short and using shorter washing machine cycles can all be great ways to keep this cost down week to week.

3. Insurance

Whether you pay it weekly, monthly or all in one annual lump sum, insurance premiums are generally a part of the cost of living. How much you pay may depend on a few factors³:

• Natural risk factors in your area
• Social risk factors in your area
• How much coverage you require

For example, some policies may only cover items damaged within your property, while others could have more expansive outlines that could protect your contents if they are stolen or damaged elsewhere ⁴. IMB Bank can offer insurance packages that could provide protection if something goes wrong. If you think you may need insurance cover, consider factoring in these costs into your budget.

4. Appliances and whitegoods

If you’re buying a new property or moving out for the first time, it can be quite possible that your domain is going to initially look somewhat empty. You may need to purchase a fridge, freezer, washing machine, dryer and perhaps even a microwave as well.

These items can be expensive and may require the services of a professional to link up to gas, electricity or water supplies. These can be some costs you may like to consider when you're moving in as you may not want any surprise expenses after the various costs of purchasing a property or the lump sum payment for the rental bond.

5. The little things

Hidden costs don't have to be obvious to be annoying. Linen, cutlery, curtains, fresh paint, and wallpaper can all form part of owning a new home that can blow your budget out of proportion. You may like to buy these items second hand or contact family and friends to get some help cutting down on these costs.

“Hidden costs don't have to be obvious to be annoying”.
 

These are a few examples of the type of hidden costs that could impact your budgeting. Whether you're looking to move out of home for the first time or have just purchased your first home, you may have the option to apply for a personal loan or otherwise, consider setting up a dedicated saving account for typical expenses to help ease the transition.

What should you check when inspecting a property?

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