Buying a home in regional Australian markets definitely has its advantages. When compared to metropolitan properties, you can expect country homes to come with a bigger block, meaning more living and garden space, but also more flexibility in design and home improvements and renovation projects down the line. Plus, there’s also certainly less traffic compared to metro living as well.
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For families priced out of capital cities, moving further out into the sticks can also make home ownership feel achievable again. But working out what you can afford isn’t as simple as comparing the sale price with what you’d pay in Melbourne, Sydney or Brisbane. Country properties often come with an array of unique expenses that can surprise new buyers. Because of this, a realistic homebuyer’s budget needs to cover the purchase itself as well as what it’ll actually cost to live there for the next five, ten or twenty years.
Here are a few strategies that make budgeting for a country home more achievable.
Look beyond your mortgage repayments
Even for homebuyers in metropolitan markets, it can be all too easy to focus entirely on your loan amount without considering all the other routine expenses that accompany owning your own home. So before you sign on the dotted line with your broker, it’s important to work out what a property is likely to cost you across an entire year, inclusive of all expenses from council rates to utilities, maintenance, and home and contents insurance.
Keep in mind too that all of these costs can vary quite a bit between regional and metro markets, so don't assume you can expect to pay what you’re paying now in your current LGA or with your current provider. The region you’re looking to buy into might be in proximity to a floodplain, for instance, which means you might anticipate higher insurance rates to align with flood reporting.
Pro tip: be sure to ask your selling agent for recent council rates for any property you go to inspect. Turning those annual or quarterly expenses into a weekly or monthly figure makes it much easier to see what owning the home will genuinely cost you, ensuring you don’t get left with unexpected bills that kneecap your saving power as a homeowner.
Don’t meet your borrowing limit
Finding a country home you love can make it tempting to stretch the budget just that little bit further. Maybe there’s an extra bedroom, a huge shed, or a gorgeous wraparound verandah of your dreams that’s convincing you another $30,000 won’t matter. But borrowing limits are there for a reason and that reason is to ensure homeowners don’t fall into the trap of living beyond their means from the get-go.
The problem for homebuyers who spend right to their borrowing limit is that buying a house comes with plenty of other expenses beyond your initial deposit. Depending on your circumstances, there may be stamp duty (which is calculated from the final sale price of your home), conveyancing costs, building and pest inspections, loan fees, and moving expenses. And because these other expenses weren’t in your budget prior to taking out your loan, they aren’t reflected in pre-approval with your broker, so you’ll need to account for them yourself.
Then there's everything you discover once you've got the keys. You might need a ride-on mower for the enormous backyard, new curtains for ten floor to ceiling windows, or a brand new fridge because your old one doesn't fit. Keeping some cash aside gives you room to deal with those things without immediately reaching for a credit card.
Factor in realistic maintenance costs for older homes
There’s no denying that older country homes can have loads of character. Unfortunately, that same character can also come with ancient plumbing and a roof that’s seen better decades.
That doesn’t mean you should avoid older properties altogether. It just means you need to be aware of what you're getting into. This is where investing in a building and pest inspection can help you identify problems before buying, because the last thing you want is to move in and find out you’re dealing with a termite infestation or a house that needs to be restumped.
Creating a maintenance fund for future repairs is also a good idea. Think about the age and condition of the roof, hot water system, safe heating and cooling, electrical system, fencing, and any sheds or other structures. If something will likely need replacing soon, plan for it now.
Putting aside a set amount each month for repairs can make a $3,000 problem annoying rather than something that’s financially disastrous.
Don’t forget about landscaping and garden maintenance either
A bigger block is often one of the best parts of moving regional, particularly if you’re coming from suburbia. Just remember that more land means more yard work.
A large garden may require more water, equipment, and time to maintain. Properties with acreage can also add fencing repairs, tree maintenance, driveway upkeep, pumps, tanks, dams, or septic systems into the mix.
Before you buy, do your due diligence and find out how the country property you’re looking into gets its water and handles wastewater. Is it connected to town water and sewerage, or are tanks and a septic system your responsibility? If there’s a long driveway or lots of established trees, consider what maintaining those will realistically cost too.
These factors don’t necessarily make a country property a bad investment. They’re simply much nicer expenses to know about before settlement than six months afterwards.
Factor in transport costs for your new daily commute
Moving somewhere cheaper doesn’t automatically mean your overall cost of living will drop proportionally. The reality is that transport costs can take a much bigger bite out of the family budget once you’re outside a major city.
If both adults commute, it’s important to calculate the actual weekly cost rather than just looking at the distance on a map. Fuel, servicing, tyres, registration, and general wear all add up, particularly if you’re suddenly driving hundreds of extra kilometres each week.
It’s also a good idea to think about school runs, sports, medical appointments, and grocery shopping. In some towns, you’ll have everything reasonably close. In others, a simple trip to a specialist or larger shopping centre can mean an hour in the car. This might not be a deal breaker to you, but it’s still important to consider.
Additionally, for households that previously managed with one vehicle, moving regional may even create the need for a second. That’s a significant expense and worth considering before deciding how much mortgage you can comfortably carry.
Give yourself some breathing room wherever possible
A budget that works only when absolutely everything goes to plan isn’t particularly comfortable, especially for a family. Life has a habit of throwing a monkey wrench into even the best-laid plans, so factoring for the worst-case scenario is important.
When deciding what you can afford, run the numbers through a few scenarios that aren't exactly perfect. What happens if interest rates rise? Could you still manage the repayments if one person temporarily loses their job? What if the car and hot water system decide to give up in the same month?
You don’t need an enormous emergency fund sitting untouched before you’re allowed to buy a home. The aim is simply to leave yourself some breathing room.
Find a country home that fits your budget to a tee
Buying a home in regional Australia can mean more space, better value for money and a lifestyle that suits your family. But the purchase price is only one part of what you’ll actually spend.
Taking the time to factor in rates, insurance, transport, maintenance, and future repairs gives you a much clearer idea of what you can comfortably afford. It’s also worth leaving a little breathing room for those expenses you simply can’t predict. With a realistic budget from the start, you can settle into your new country home and actually enjoy everything that drew you there in the first place.