Budgeting for your first property purchase

But when it comes to budgeting for your first property purchase, it's important to look beyond the cost of the home itself. There are a number of expenses associated with buying a property, and being prepared can help you make better decisions about how much money you need to borrow.

One major expense that new buyers of real estate will need to be aware of is the cost of inspections.

Should you have your heart set on a property, the first thing you'll want to do is ensure that it's structurally sound and free from pests. It's important that you check because if you don't, you might be left with hefty repair bills that could perhaps be more trouble than they are worth!

Another cost that is commonly underestimated is the expense associated with moving. Whether you choose to go it alone or hire removalists, don't forget to budget for boxes, time and labour - and if you're enlisting the help of family and friends on moving day, you'll want to save a bit of cash for food to feed your crew.

On a related note, don't forget about the costs associated with moving your electricity account or re-connecting your phone, TV or broadband plan. Speak to your provider sooner rather than later to avoid excess charges.

They say that nothing in life is certain except death and taxes, but when moving is concerned, stamp duty is a certainty. Stamp duty is calculated differently in each state, but the formula for working out the cost is similar to income tax, where the cost of the home falls into a price bracket and you pay a flat amount plus a percentage. However the Northern Territory is the exception with a complicated formula used to work it out. You can find out more from your state or territory's leading real estate body or the state government.

A former renter may not think of this, but home insurance is important as now not only are there contents to worry about, but the actual home itself should be covered.

Consider the costs outside the purchase of the first home to make sure that you won't be overwhelmed by the expense.