Just moved in? Common first-time homeowner mistakes to avoid

Article summary:

• Update your monthly budget to account for the real cost of homeownership, including rates, levies, insurance, utilities and maintenance.
• Avoid overspending on furniture, décor or cosmetic upgrades before your finances have settled after transfer and moving costs.
• Stay on top of maintenance, insurance, property documents and complex rules to avoid unnecessary costs or complications later.

Congratulations! After a long journey to becoming a first-time homeowner, you’ve gotten the keys to your dream home and are ready to settle in. But now is where the real adjustment begins. 

From managing monthly costs to staying on top of maintenance and insurance, the first few months in a new home are crucial to setting you up for long-term success and confidence in your new status as a homeowner.

Failing to adjust your monthly budget

One of the biggest mistakes many first-time homeowners make is assuming your monthly budget, aside from the obvious home loan repayment commitments, will be the same as when you were a renter.

Because while your bond repayments will probably be your biggest monthly cost, there are other expenses to budget for. Rates, levies, water, electricity, insurance, security, and even garden services are all part and parcel of owning rather than renting. 

The first few months in your new home are a good time to track your real expenses and adjust your budget accordingly. This helps you understand what homeownership actually costs and where you may need to cut back or plan more carefully.

Spending too much too soon

After moving in, it is natural to want the home to feel finished as quickly as possible. Investing in new furniture, appliances, curtains, paint, landscaping and small upgrades can all feel equally urgent.

However, after paying transfer costs, moving expenses and other upfront costs, many first-time homebuyers need time for their finances to recover.

A new home does not need to 100% perfect in the first month. Focus on essential repairs, safety and basic functionality first, because cosmetic upgrades can be done gradually as your budget allows.

Failing to account for maintenance costs

When you rent, maintenance is usually the landlord’s problem. When you own the property, it becomes yours.

This is one of the biggest adjustments for new homeowners. Plumbing issues, electrical faults, geyser repairs, roof leaks, damp, blocked gutters and appliance replacements can all come up unexpectedly.

Ignoring small problems can also make them more expensive. A leaking tap, damp patch or drainage issue may seem minor at first, but can lead to bigger repair costs if left unchecked for too long.

Setting aside even a small monthly amount for maintenance can make these costs easier to manage, while also helping protect the long-term value of your property.

Leaving gaps in your insurance cover

When you buy a bonded property, the bank will require you to take out Buildings Insurance. This mandatory insurance covers the physical structure of your home against damage caused by events such as fire, storms or flooding.

As the name suggests, Home Contents Insurance, also known as Household Insurance, covers what building insurance does not: your personal belongings. This includes furniture, appliances, clothing and electronics. While optional, it is highly recommended.

Some banks will also require you to take out Bond Protector Insurance, which will cover your monthly repayments or outstanding home loan if you pass away, become disabled, critically ill or are retrenched, depending on the policy.

ooba Insure offers all three types of cover, helping homeowners protect their property, possessions and bond repayments as they settle into homeownership.

Not keeping important documents organised

Buying a home comes with a lot of paperwork, and it is easy to lose track of important documents once the move is over.

First-time homebuyers should keep copies of their Offer to Purchase, bond documents, insurance policies, compliance certificates, municipal account details, levy statements, body corporate rules, warranties and renovation invoices in one secure place.

These documents may be needed for insurance claims, future repairs, body corporate queries, refinancing or when you eventually sell the property.

Forgetting to review your home loan over time

Many first-time homeowners aren’t aware that the terms of their home loan are not set in stone and can be reassessed as your financial position changes. You may be able to pay extra into your bond, shorten your loan term or explore whether a better interest rate is available to you a few years in. 

Even small additional payments can reduce the total interest paid over the life of the loan.

This is why it is worth reviewing your home loan and insurance needs regularly, even after you have moved in.

ooba Home Loans supports buyers throughout the homeownership journey, from helping you secure a competitive home loan to protecting your property through ooba Insure.