The nerves and excitement that come with owning your first home are uplifting. You are happy with where it’s located and now have plans to make it your own. The costs might have been expensive or cheap, but you have had that budgeted for. However, a few weeks into moving in, you realize the expenses keep cropping up.
Well, don’t be shocked; such are the perks of owning a home. While your budget might be sound, the actual cost of living where you do is flexible. Anticipate unexpected homeownership and maintenance costs. Below are some of the expenses to look out for before owning a home:
Property Taxes
Paying for rent hides out one considerable expense associated with owning a home, property taxes. Property taxes vary by the state, city, town, or neighborhood you reside in. The amount is based on the value of the location you live in. You can find out about your annual tax rates by looking them up online. In case you feel the taxes imposed are high, hire a lawyer. Strategies like grieving your tax assessment could lower the amount.
Homeowners Insurance
One of the requirements to getting a mortgage is having homeowners’ insurance. Homeowners’ insurance is often forgotten payments that get covered by the significant home expenses. The insurance costs are mainly catered for from your escrow account. And while you might have budgeted that out, the associated premiums rise each year. Home insurances are higher in places where flood or earthquake occurrences frequent. Other insurance costs, including electricity or heat insurance, which occur when purchasing old houses.
Maintenance Costs
Living in your homes means replenishing changes and fixing any damages. Maintenance costs can be random, so monthly tracking can help spread out expenses. Some costs are required seasonally such as snow maintenance during winters. Here is a list of some expenses towards maintaining your home:
- Appearance of your home, includes paint, cracks or crevices and lighting
- The garden or lawn
- HVAC/air-conditioning and furnace maintenance
- Pet Control
Utilities
It will help if you don’t underestimate the annual accumulative power of your utility costs. Experts suggest for some homes, the expenses could match and surpass the taxes cost. Your utility costs vary with weather, appliances used, home size, and cost of living.
Your Need to Upgrade
Change is inevitable, and your home could seem to force demands on you. Need to make changes and buy new or upgrades to your current home is normal. If you are planning to rent or sell your home later, this is a critical practice. Home inspection visits could also be a factor in making changes. Always cater to your future demands when buying a new home.
Safety and Leisure Needs
Owning a house comes with the responsibility of taking care of what is yours. Security changes like adding a fenced wire, alarm monitors, or security dogs significantly add to your expenses. Social amenities and luxury desires make our homes comfortable and enjoyable. Expect to experience costs on the internet, cable television, and even swimming needs.
While you plan or get into owning a home, it’s better to stay prepared. Noting your expenses can help you settle and gauge any extra costs for your home. Before owning a home, research and know any add-on expenses you might incur.
by: Alex Capozzolo
Alex Capozzolo is a partner of Cash Offer Kentucky. We buy houses in Louisville, KY. Alex has been writing for the real estate industry for several years. Cash Offer Kentucky focuses on single-family and small multi-family houses.