One common dream shared by most people is that of one day owning a house. Yet, it remains quite a distant goal due to the ever-increasing prices in real estate. Unfortunately, overcoming this hurdle and managing to purchase a house does not seem to end the expenses. Most people seem to be unaware of the costs associated with maintaining a house. The follow is a list of common expenses associated with maintaining a house in Australia.
Each year you required to pay tax on the property you own, with the price varying according to the size and location of the property. The average property tax for a household in Australia lies around $1300 annually.
The cost of electricity in Australia is $0.338 per kWh. With average annual prices totalling up to about $1273 for a single person household and around $1509 for a 2-person household. You will be able to reduce the electricity costs drastically by installing solar panels.
The price of water changes drastically within different states in the country with South Australia having the highest rates of around $4.55 per kilolitre, while Hobart being the cheapest at $1.06 per kilolitre. The quarterly prices range from $246 to $330 throughout the country.
There are many local businesses within every state and region engaging in cleaning services. And their rates vary depending on the location. For instance, house cleaning in Ballarat is comparatively cheaper than in Sydney.
Internet connectivity has become a basic necessity in today’s world. Australia has been ranked to be amongst the countries with the most expensive internet rates in the world with the average cost of a 100 Mbps connection being $94.68.
Australia is unfortunately prone to quite a few natural disasters and harsh environmental conditions. In order to safeguard the property, owners are required to possess homeowner’s insurance to cover any losses to the property or assets. The prices for it will vary according to your property and the coverage plan you chose, but the average price is around $112 per month.
Many appliances are prone to break down and there will be odd damages to the house now and again which will require the services of a handyman. Therefore, the average cost of repairs for a year cannot be estimated as there is a wide variety of issues that could go wrong. But as a general estimation, it is safe to assume that at least 1% – 5% of the cost of the property will be spent.
Upon considering all the expenses noted above and the others which have not been highlighted, you can begin to realize that maintaining a household requires a substantial amount of money. It is important to also understand that in addition to the price of maintaining the house you will also have to bear your living expenses. So, before you decide to invest in a house, do your research and ensure that you are in a position to undertake this massive challenge.