Preparing financially
Ongoing costs of home ownership
Council rates, insurance, owners corporation fees and a maintenance contingency — the recurring costs that continue long after settlement.
- Ownership costs recur indefinitely, unlike the one-off costs of buying.
- Owners corporation fees apply to apartments, units and townhouses on shared land, and can vary significantly with building age, size and amenities.
- A special levy can be raised for unbudgeted owners corporation repairs — check financial records during due diligence before you sign.
- A maintenance contingency belongs in a genuinely safe ownership budget, not just the mortgage repayment.
Costs that continue after settlement
Buying costs are one-off; ownership costs recur for as long as you hold the property. Budgeting for both separately avoids being caught short in the months after settlement, when several new recurring costs typically start at once. Common ongoing costs include: council rates, water and sewerage charges, building and contents insurance, and — for apartments, units or townhouses on shared land — owners corporation (body corporate) fees.
Owners corporation fees
Owners corporation fees fund shared building costs — building insurance, common-area maintenance, and a sinking/capital works fund for larger future repairs. Fees vary significantly by building age, size and amenities (a lift or pool adds ongoing cost). A special levy — an additional one-off charge beyond the regular fee — can be raised for unbudgeted repairs; reviewing the owners corporation's financial records and any planned works during due diligence, before signing, is the way to catch this in advance. See the due diligence guide.
Insurance from settlement
Most lenders require building insurance in place from settlement (for houses and townhouses; apartment buildings are typically insured through the owners corporation, though confirm what it actually covers). Contents insurance is separate and optional, but worth budgeting for given the value of most households' possessions.
Maintenance and a repair contingency
Ongoing maintenance and eventual repairs (a hot water system, roof, appliances) are a real recurring cost even though they don't arrive on a fixed schedule. Setting aside a contingency, rather than assuming maintenance won't be needed for years, is part of a genuinely safe ownership budget — see the safe budget guide's three-ceiling framework.
Practical checklist
Before finalising your ownership budget
- Get an estimate of council rates and water charges for the specific property
- Get a building insurance quote (and check what an owners corporation policy actually covers, if relevant)
- Review the owners corporation's financial records and any planned works, for apartments/units
- Set aside an ongoing maintenance contingency, not just a one-off settlement buffer
Relevant Delora tool
Questions for a professional
- What are the current owners corporation fees, and is a special levy being considered?
- What does the owners corporation's building insurance actually cover?
- What would you budget as an annual maintenance contingency for a property like this?