Take the quiz: Are you financially ready for homeownership?

Discover whether you really are financially prepared for the costs that come with owning a property.

You feel ready to buy your first property. You are excited, you may even have enough for a deposit, and your finances and budgeting suggest that you can afford a home loan repayment.

But this is where many first-time homeowners make their biggest mistake: qualifying for a home loan and comfortably affording homeownership are not the same thing.

Your monthly home loan repayment will likely be your largest property ownership expense, but there are other costs that need to be included in your budget, such as rates and taxes, levies, insurance, utilities, maintenance, security and unexpected repairs.

There are also once-off costs to consider before you even receive the keys, including transfer costs and home loan registration costs.

So, how prepared are you for the real cost of owning a home? Complete the quiz below to find out.

Scoring

• A = 1 point
• B = 2 points
• C = 3 points
• D = 4 points

After completing all 12 questions, total your score to discover your true financial readiness for homeownership.

1. When working out whether you can afford a home, what do you focus on first?

Understanding how home finance works is an important part of determining what you can realistically afford.

A. The monthly bond (home loan) repayment. If I can afford that, I can afford the house.

B. The home loan repayment and my current household expenses.

C. The bond repayment, monthly property costs and my general living expenses.

D. The total cost of ownership, including monthly costs, once-off costs and an emergency fund.

2. You are buying a freehold home. Have you checked what you will pay in rates and taxes?

A. No. I assumed that would be included in the home loan repayment.

B. I know there will be rates, but I have not checked the actual amount.

C. Yes. I will ask for the current rates and include them in my monthly budget.

D. Yes. I will check the current municipal costs and allow for possible increases in my future budget.

3. You are considering buying a sectional title apartment. What is your approach to levies?

Before buying, it helps to understand what to look for as a first-time sectional title buyer.

A. I have not really thought about levies.

B. I will check the levy amount, but mainly to see whether I can afford it today.

C. I will check the levy, what it covers and whether there are other regular charges.

D. I will examine the levy, the scheme's financials, maintenance requirements and the possibility of future increases or special levies.

4. What do you know about special levies?

A. Nothing. I thought levies covered everything.

B. I know they can happen, but I will deal with them when they come up.

C. I understand that owners may have to contribute additional money towards unexpected or major expenditure.

D. I understand the risks and will investigate the sectional title scheme's finances, maintenance needs and reserves before buying.

5. What is your plan for home insurance?

A. I have not included insurance in my budget.

B. I assume the bank or managing agent will take care of everything.

C. I know I may need to budget for insurance, depending on the property and what is already covered.

D. I will establish exactly what insurance is required, what is already covered and what additional cover I may need.

6. How will you budget for electricity, water and other utilities?

Utility costs can make a noticeable difference to your monthly budget, so it is worth understanding how to reduce your monthly housing costs.

A. I will worry about those after moving in.

B. I will estimate the costs based on what I currently pay.

C. I will ask to see previous utility costs from the current owner and build an estimate into my monthly budget.

D. I will research current costs, allow for seasonal changes and prepare for possible tariff increases.

7. Your potential new home will need a security upgrade. What will you do?

A. I will put it on a credit card.

B. I will try to find the cheapest solution.

C. I will compare the cost with my available savings before deciding what to do.

D. I will factor security costs into my homebuying budget before purchasing the property.

8. The geyser bursts six months after you move in. How prepared will you be?

A. I will have no idea how I would pay for it.

B. I will probably use credit.

C. I have some savings that could help cover an emergency repair.

D. I maintain a dedicated emergency fund that will help me deal with unexpected property expenses.

9. How do you think about maintenance?

A. New owners should not have to spend much on maintenance.

B. I will fix things when they break.

C. I understand that homes need ongoing maintenance and will budget for it.

D. I will plan for both routine maintenance and longer-term repairs and replacements.

10. Before making an offer, how will you approach transfer and home loan registration costs?

A. I assume the home loan will cover everything.

B. I know there are legal costs, but I have not investigated them.

C. I will get estimates and make sure I understand how much cash I will need before transfer.

D. I will obtain detailed estimates of all once-off buying costs and make sure paying them will not wipe out my emergency savings.

11. Your monthly household budget becomes tighter after buying your home. What will you do?

A. I hope I can make it work.

B. I will cut back on spending.

C. I will review my budget and identify expenses that I can reduce.

D. I will stress-test my budget before buying to see whether I can cope with higher living costs and unexpected expenses.

12. Which statement best describes your financial approach to buying a home?

A. If the bank approves my loan, I can afford the property.

B. If I can manage the home loan repayment, I will work out the rest.

C. I need to understand all my regular housing expenses before deciding what I can afford.

D. A home is a long-term financial commitment, so I need to consider affordability today, future cost increases and my ability to deal with financial shocks.

Your score

Minimum score: 12
Maximum score: 48

12–20 points: The monthly repayment thinker

Your focus is firmly on the home loan repayment because it is usually the biggest monthly expense. However, because the home loan repayment is only part of the financial picture, you may be at risk of becoming house-rich but cash-poor. This means that while you may own a property, you have too little money available for everything else.

Your next move: Work out what the property will really cost each month – not just what the bank says you can borrow.

21–29 points: The cost discoverer

You understand that homeownership involves much more than paying the bond and that additional costs exist. However, there may still be some gaps in your planning. The danger is that smaller expenses can add up, while unexpected costs can quickly disrupt a tight budget.

This is the ideal time to become more financially informed by asking questions before you buy. What are the current rates, taxes and levies? How much can you expect to pay for utilities? What is the financial health of the sectional title scheme?

Your next move: Turn your general understanding into real numbers. Build a realistic monthly budget using the costs associated with the specific property you want to buy.

30–38 points: The prepared owner

You have a healthy understanding of the financial responsibilities that come with owning a home. You recognise that affordability is about more than qualifying for a loan, and you understand the importance of maintenance and keeping money available for unexpected expenses.

However, municipal charges, levies, insurance premiums and other expenses can increase over time.

Your next move: Review your homeownership budget regularly and avoid stretching yourself to the absolute maximum of what you can afford.

39–48 points: The financially resilient buyer

You have a strong understanding of the real cost of homeownership. You look beyond the purchase price and home loan repayment and consider the bigger financial journey of owning a property – including both predictable costs and unexpected financial shocks.

This puts you in a strong position to make an informed property decision based on what your finances can realistically support.

Your next move: Build and protect your emergency savings, plan for maintenance and regularly review your costs as your circumstances change. You are financially prepared to start looking for your first home.