The prospect of owning your first home can be nerve-racking but also very exciting, especially if you’re making the jump from renting. While owing your own home can be a great long-term investment, it’s important to make sure you’re ready for the ongoing costs that come along with it. Here are just some of the things that you should be prepared for when you take the plunge into homeownership:
Homeowner’s Insurance – This is an unavoidable expense and you can’t complete the home buying process without it. Homeowner's insurance is a form of property insurance that covers losses and damages to your house and to assets in the home. Homeowner’s insurance also provides liability coverage against accidents in the home or on the property. However, this is not to be confused with mortgage insurance or a home warranty.
Property Taxes – As a homeowner, you’ll need to pay property taxes. Tax rates will vary depending on the area in which you buy, but your home is typically taxed on its assessed value. Make sure you know what this monthly number will be before you sign on the dotted line.
Maintenance & Renovations – Although this isn’t necessarily a monthly expense like a mortgage payment, it will still creep up at some point. Preventative maintenance is key to ensuring your home stays in great shape over the years. Maintenance costs might include things such as a new roof or hot water heater, and even lawn and pool upkeep. Over time, you might also consider renovating an entire space like a kitchen or bathroom to keep things modern and fresh.
Repairs – If you’re not buying a brand-new home, you’ll likely run into some repairs that will need to be addressed at some point. Whether it’s your air conditioning or heating on the fritz, a leaky faucet, or some drywall that needs patching, be prepared and have some sort of budget set aside for this whether you decide to take the DIY route or hire a pro.
Utility Bills – If you want to stay warm and have running water, this is another unavoidable cost. If you’re moving from an apartment to a home for the first time, it’s important to note that your utility bill will likely be higher due to the increase in overall square footage. It’s a good idea to get an estimate of how much your new utilities will cost so that you can budget accordingly.
Although there may be more costs associated with owing a home than you had originally imagined, don’t let that get in the way of you purchasing the home of your dreams or a great investment property!
For more info on this subject or for any questions you might have, feel free to get in touch with Jacob today – email Jacob@soldbyjacob.com or call direct (905) 743 5525.