As a homeowner, there are a lot of costs and maintenance requirements that you need to be aware of. It can be overwhelming to try and understand everything that goes into owning a home, but with a little bit of knowledge and preparation, you can navigate the world of home ownership with ease. In this video, we will be discussing the different costs involved in owning a home, as well as the maintenance requirements that come with it. Hopefully, by the end of this, you can be well on your way to learning how to treat property like a business. Introduction to Home Ownership and Understanding the Different Costs Involved Owning a home is a big responsibility, and it’s important to understand the different costs involved. These costs can include things like: As a homeowner, there are many costs that need to be taken into consideration and all these expenses do add up quickly. One of the most common and unavoidable costs is council rates. Understanding Council Rates and How They Are Calculated Council rates are fees that are charged by local councils to help fund local services and facilities. These rates are calculated based on the land value of your property and can vary depending on which local government area (LGA) your property is located in. So a 600sqm block as opposed to a 1000sqm block would have different rates and you would expect that the larger block size land would result in higher council rates to be paid. The land value of your property can generally be found on your council rates bill. Different Council Rates and How They Vary Across Different LGAs As previously mentioned, council rates can vary depending on which LGA your property is located in. Some LGAs may have higher rates than others, so it’s important to research the rates in your area. For example, some LGAs may have more parks and recreational facilities than others, which can result in higher rates. There are even different bin sizes and types of bins that each LGA has. So some have green waste, red waste and recycling. Some just have red waste and recycling. Understanding Bin Days and Bin Types in Different Areas Bin days and bin types can vary depending on which area you live in and because some areas have different-sized bins or different collection schedules, it’s important to be aware of these differences. All of these factors result in the amount that you pay for council rates. Council Collections and Pick Ups In addition to bin collections, your local council may also offer other collection and pick-up services like collecting different types of bulky items like furniture and older appliances that you longer have use of. Be sure to check your council guidelines as there will be items that they will not take. Understanding the rules and regulations set out by your local council is essential in making sure that you are following the proper guidelines. You would also want to consider saving money where you can. For example, some councils charge for bin replacements and some don’t and therefore you would want to look after your bins as best as possible and saving money where you can is an important consideration as the last thing you want to do is notice your costs all adding up and increasing for reasons that aren’t necessary. It’s the same thing for water rates and usage. These are also unavoidable however are something that you can control and put certain measures in place to reduce the amount that you are using. Water Rates and Usage Water rates are charged by your local water authority and are based on the amount of water that you use. It’s important to be mindful of your water usage to avoid high water bills. There are a number of things that you can do to reduce your water usage and lower your bills. For example, you can install water-efficient appliances and fixtures, like water-saver shower heads, fix any leaks, and reduce your overall water usage by taking shorter showers and using a water-efficient washing machine. Additionally, you can research what water-saving programs your local council may offer. Water rates and usage are generally charged quarterly however it’s up to the water company to decide how and when they bill you. There are some companies out there that will read the water meter monthly or in some cases only twice a year being biannual. So make sure you read the terms and conditions of your water bill to understand how often you will be billed for your usage. Having said this, different companies charging different rates at different times isn’t just for water and in fact, the same thing can be said about electricity rates and usage. Electricity Connection Rates and Usage The billing cycle for electricity and usage is anywhere between 1 to 3 months. The date that your bill is generated and sent to you is the bill cycle date. So, your rates notice for example may be generated on the 15th of every month, this means that your billing cycle is the 15th of every month. Otherwise, quarterly or bi-monthly bills come every 2-3 months. Just like water, electricity rates and usage, Electricity rates may vary depending on your energy provider. Your energy provider charges electricity connection rates and are a one-time fee for connecting your property to the electricity grid. These fees can vary depending on your provider, so it’s essential to shop around and compare your options. In addition to connection rates, you will also be charged for your electricity usage. It’s important to be mindful of your electricity usage to avoid high bills. You can reduce your electricity usage by using energy-efficient appliances and turning off lights and electronics when not in use. As you can see there are ways to reduce your usage across different rates, fees and charges when it comes to the costs of running a home. I’m sure you can imagine…
