After buying your home, the settlement process ensures the legal transfer of ownership. You’ll need to prepare for ongoing responsibilities.

On the day:

• The balance of the purchase price is paid to the seller.
• Your legal team or conveyancer registers the property in your name with the titles office.
• You’ll receive the keys to your new home.

Costs on settlement day:

• Balance of purchase price: Amount agreed in the contract minus deposit.
• Adjustments: Pay outstanding rates, water bills, or strata fees for the property up to settlement date.
• Title registration fee: Approximately $1,200, paid to the state government for ownership registration.

Insurance and Utilities

• Arrange insurance to cover the building and its contents from the day of settlement. This is mandatory if you have a mortgage.
• Compare policies for coverage against fire, theft, and natural disasters. Budget $1,000–$2,000 annually.
• Utilities transfer: Organize connection or transfer of electricity, gas, water, and internet to your name. Allow up to two weeks for this process.

Your New Responsibilities

• Council rates: Pay these quarterly or annually to your local council. Rates vary but average $1,200–$2,800 annually in Victoria.
• Strata fees (if applicable): For units or apartments, you’ll contribute to shared property maintenance costs. Fees range from $500–$2,000 annually.
• Mortgage payments: Set up automatic payments to ensure you meet monthly repayment obligations.

Maintaining and Managing Your Property

Moving in marks the beginning of a new chapter, and maintaining your home ensures its value and safety over time.

• Budget approximately 1% of your property’s value annually for upkeep. For a $500,000 home, this means $5,000 per year. Common costs include:
  • Plumbing and electrical repairs.
  • Roof maintenance and gutter cleaning.
  • Repainting and landscaping.
• Insurance premiums:
  • Regularly review and update your home and contents insurance to ensure adequate coverage.
  • Notify your insurer if you renovate or make significant changes to the property.
  • Monitor your electricity, gas, and water usage to avoid bill shocks. Consider energy-efficient appliances and solar systems to reduce costs.
• Emergency fund:
  • Set aside savings for unexpected repairs, such as appliance replacements or structural issues.

Property Upkeep

• Regularly check for signs of wear and tear, such as dampness, mold, or cracks.
• Schedule pest inspections annually, especially in termite-prone areas.
• Keep gutters clean to prevent water damage.
• Maintain fences, driveways, and gardens to preserve curb appeal.
• Start with small updates like repainting or upgrading fixtures.
• Larger projects, like kitchen or bathroom renovations, can increase your home’s value but should be planned carefully to avoid overspending.
• Install and maintain smoke alarms as required by Victorian law.
• Work with neighbours to maintain shared boundaries and resolve disputes amicably.

Settling In

• Community connection: Introduce yourself to neighbours and explore local services like childcare, schools, and community centers.
• Budget adjustments: Update your household budget to account for new costs like rates, insurance, and maintenance.

Final Tips for a Smooth Transition

• Keep records: Maintain a file of all property-related documents, including insurance policies, repair receipts, and rate notices.
• Plan for the future: Regularly review your financial goals to ensure your home aligns with your long-term plans.
• Ask for help: If you’re struggling with maintenance or financial obligations, seek support from local services or community groups.

Understanding Costs After Purchase

Buying property comes with more costs than just the sale price. Stamp duty, building inspections, and legal fees can add up quickly.

There are also the ongoing costs of ownership, such as council rates, building insurance, and maintenance.

Hidden costs, like lender fees or repairs after moving in, can strain your budget if you’re not prepared. It’s always a good idea to have a financial buffer to cover these unexpected expenses.

Costs of Buying and Owning

Hidden Costs:

• Stamp duty
• Lenders Mortgage Insurance (LMI) if the deposit is below 20%
• Conveyancing and legal fees
• Inspection reports

Tax Considerations:

Owning property may have implications for capital gains tax, especially if the property is not your primary residence.

Ongoing Costs:

• Council rates
• Home insurance
• Maintenance and repairs

Final Tip for Buyers

Don’t feel rushed to sign a contract if something in Section 32 is unclear. Take the time to ask questions, consult professionals, and ensure that you fully understand all the details.

The more informed you are, the more confident you’ll feel in your purchase. As a single mother, knowing you’ve made a secure and informed decision about your home can be a powerful step toward long-term stability for your family.

CSMC’s Housing resource was made possible thanks to the support of: