Buying your first home can be a daunting task. Even after you’ve scraped together a deposit and moved into your new home, you can be confronted by bills and unexpected expenses.

John Ng, a finance broker based in Naarm/Melbourne’s inner west, says these hidden costs of home ownership can add up — and while most first home buyers are thinking about the potential risks of buying, they can still be unprepared.

“A lot of [first home buyers] will be living with their folks or have been renting for many years,” he says.

“Their idea when they purchase their new home is that the only out-of-pocket expense is the home loan payment.”

In fact, paying a mortgage is just one part of the cost of home ownership. Here are some of the other expenses to factor in if you’re looking to buy your own home.

The extra cost when you buy an apartment or townhouse

If you’re buying a unit or a townhouse, it’s likely you’ll have to pay fees to an owners’ corporation, also known as a body corporate, to cover the maintenance of communal areas such as stairwells, shared gardens, and driveways.

Emily Wallace, a buyer’s advocate based in Naarm/Melbourne, says these fees have been increasing in recent years due to rising insurance premiums.

Body corporate fees for simple units in an older-style brick blocks in Melbourne typically range from $2,500–$4,000 per year, she says.

Fees can be much higher in apartment blocks with gyms, pools, lifts, car stackers and other expensive features. Ms Wallace says owners in these buildings may pay $5,000–$8,500 in fees annually — with even higher rates for luxury buildings.

“Amenities and additional ongoing maintenance items, such as servicing a lift or car stackers, you might have to get someone out annually [for maintenance],” she says.

“Obviously, there’s call-out fees if they break. It’s something that can add up.”

When buying an apartment or townhouse, Ms Wallace says it’s important to understand the body corporate fees and check for special levies or charges. Most buyers engage a conveyancer to help them review important documents and contracts.

Why you’ll spend more on insurance after buying a home

Another cost that can take new home owners by surprise is insurance.

“A lot of first home buyers only pay for contents insurance. Once they own a home, there’s an additional cost: they’re now paying for home and contents,” Mr Ng says.

Home insurance premiums can vary widely, depending on where you live, the type of building and the risk of natural disasters like bushfires and flooding.