For many Australians, a home is more than just a physical investment that builds value over time. It’s a source of comfort and security, allowing families to grow healthy as the years go by. The goal of homeownership is costly at best, considering that you will need to pay a hefty price to keep the house in your possession, keep it in good condition, and protect it from any unwanted scenario.
Over the years, the median price of Australian homes has increased significantly and the rising prices of basic goods are making it difficult for families to get by. It’s only a matter of making the right choices and coming up with a financial strategy that will be able to overcome the challenge of owning your home in the long run. For sure, it starts with keeping track of your homeownership costs and using these tips to save money all while securing a comfortable living space for your loved ones.
1. Review local property tax rates
The first thing to watch out for is any uptick in local property taxes. Failing to be cognizant of these changes may cause you to pay taxes based on an erroneous assessment of your property. There may be an instance in which your total tax liability is not in line with the actual value of your property.
In that case, you have the right to object and dispute the valuation to your local Revenue Office. As long as you have complete evidence to support your case, you may get a revised valuation and get a refund for the taxes you paid.
2. Mind your energy consumption
Changing the way you use household appliances helps in a big way. Your monthly savings may come in trickles but committing to a sustainable lifestyle yields significant returns in the long run. With that being said, consider unplugging when you’re not using them. It also helps if you can keep your HVAC system in optimal condition by cleaning out the filters.
You can also replace outdated appliances with ones that have a high Energy Star rating. Old bulbs may also need to be replaced with LED ones. You can also opt for other improvements such as adding insulation to the interior so you can decrease HVAC usage.
3. Opt for a mortgage offset
In Australia, homeowners have the option of applying for a mortgage offset account. This allows them to link their deposit account to their mortgage. Acting as a savings account, you can deposit an amount to offset the interest you pay. This leads to substantial savings as you only have the principal to deal with. If you’re curious about how much you will need to deposit for an optimal interest reduction, use a mortgage offset account calculator online and enter the needed information.
4. Refinance your property
If you’ve owned your home for a long time, you may have built enough equity to pay off your existing mortgage and replace it with one that has more favourable terms. You may choose to refinance with your current lender or reach out to a different provider that may have better deals.
This might be the best strategy to use because interest rates have been steadily rising. Through refinancing, you get a mortgage deal that requires lower monthly repayments and lower interest rates. Some lenders require hefty fees if you want to refinance with them, so shop around for the best possible deal.
Endnote
You wouldn’t want rising costs to get in the way of providing your family with a secure, safe, and comfortable living space. Fight financial uncertainty by following these tips and amplifying your savings.
