Top 7 hidden costs of home ownership
Thinking that home ownership might be cheaper than a monthly rent can turn out to be a huge surprise for some. Depending on the market you’re considering to buy a property in, make sure you are aware of the following costs that can turn your plans upside down.
Without a doubt, home ownership comes with both advantages and drawbacks. To make sure the balance stays in your own favor, take your time and estimate these costs too.
The hidden traps of home ownership
Don’t just focus on the sticker price – home ownership is not all about that. As some dreamers might think, you won’t be needing only a 20% down payment and then a monthly mortgage. No, unfortunately things go a little bit above and beyond this amount.
So, in order to avoid being shocked when becoming a home owner yourself, here are some expenses you haven’t probably thought about as a renter. Jumping from paying a monthly rent to becoming a home owner with full rights might become stressful and overwhelming.
One of the first things that should cross your mind when thinking about home ownership expenses is the insurance costs. As they can vary from country to country and from area to area, there should be no surprise when you discover the risk factors that can ruin your budget instantly. Plan this move carefully, or you’ll just end up paying an arm and a leg.
A common mistake that first-time home owners make is that they never consider the property taxes when deciding to purchase a certain property. Make sure you get the right numbers, divide them by twelve, and add them to your monthly expenses too. Don’t let this catch you off-balance. You usually find them on the MLS Listing info.
Maintaining an entire property can become daunting and really expensive. You certainly cannot compare this to upgrading a room or anything else. Think about costs such as repairing the deck, the roof, the plumbing leaks, and the list can go on and on forever. You never know when you’ll have to take care of these ones, but something is certain – these expenses are inevitable.
Cutting and maintaining the lawn can come as another surprise. It’s impressive when it’s green and charming. But you know what? It takes both time and money to keep it in proper condition!
Apart from the annual maintenance costs, think about upgrading your property too. Because you’ll probably want this, at a certain point. As much as you prepare for this, there are always variables that can affect your initial budget.
This expense is an obvious one. It might not a hidden cost, but consider it together with the rest, as it will chew heavily on your budget.
If you’re living in a condominium or a planned community, then you shouldn’t forget about the association fees either. These expenses usually include shared services such as landscaping, garbage costs and so on. You’ll be enjoying certain privileges,but you’ll have to be ready to pay for them.
Considering the inevitable expenses coming up your way once the idea of home ownership appeals to you, will only make the transition smoother. Be mindful of these costs when planning your budget and you won’t be longing for the ‘good old renting days’ anytime soon. Home buying is probably your biggest investment, so make sure you’re ready for it. Good luck!
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