Welcome to TMAP‘s Christmas Countdown! Each day, we’re sharing property lingo, insights, tips, and tools to help first home buyers start 2025 on the right foot—perfect for first-home buyers and seasoned investors alike.
Owning property is a rewarding milestone, but it comes with ongoing expenses that can catch new buyers off guard. Beyond the mortgage repayments, two common hidden costs—maintenance and strata fees—can impact your budget if you’re not prepared. Here’s what you need to know and how to plan for them effectively.
1. Maintenance and Repairs
- What It Includes: General upkeep like plumbing, electrical fixes, landscaping, and unexpected repairs (think roof leaks or appliance replacements).
- How It Adds Up: Over time, even small fixes can become significant costs. Older properties may require higher upkeep compared to newer homes.
- TMAP Tip: Set aside at least 1-2% of your property’s value annually for maintenance. For example, if your home is worth $500,000, budget $5,000 to $10,000 per year.
2. Strata Fees (for Apartments and Units)
- What It Includes: Contributions towards building insurance, shared area maintenance (e.g., lifts, pools, and gardens), and administration costs.
- How It Adds Up: Strata fees vary widely depending on the property’s size, location, and amenities. Some high-end apartments with pools or gyms may have strata fees running into thousands annually.
- TMAP Tip: Before purchasing, review the strata report to understand what you’ll pay and what’s covered. It’s also worth checking if the building has a healthy sinking fund for major future repairs.
Plan Smart and Stay Ahead
Hidden costs don’t have to be stressful if you plan for them. By factoring in maintenance and strata fees from the outset, you can ensure your property remains an asset and not a financial burden.
TMAP can help you prepare for these costs with a personalised budget strategy and expert advice. Property ownership is a journey—let us make sure you’re ready for every step!
