People often then a rental payment and mortgage payment are made equal, but this is often not the case. Along with the responsibility of homeownership comes preparation for those unexpected costs.
- Insurance
Homeowners insurance is often more costly than rental insurance. The older your home, the higher your insurance premium will likely be. Regardless of the age of your home, be sure you are properly insuring your property, so you are well prepared for the inevitable
- Maintenance
When purchasing a home, don’t forget about the repairs that will come your way during that time. Think about all of the random things that break in your apartment that you call maintenance for. Leaks, door seals, windows, light bulbs, toilets…
- Property taxes
Property taxes are a huge factor into your monthly expenses on owning a home, yet, people tend to forget about them until it’s time to pay. You can usually find how much your property taxes with a quick online search. Depending on your loan type, you with either pay your taxes monthly within the house note or annually
- Pest Control
When you see a mouse or bug and you don’t own the property, you can just call your landlord to deal with the issue. When you own the home, you’re the one that must call pest control to come take care of it. Put aside a few hundred dollars a year on keeping up with maintenance of pests. It’s easier to go this route than have to replace your flooring or furniture.
- Add-Ons
Renovating your home can be fun! Add on a deck in the back yard, extend the master bedroom…but what first time buyers fail to realize is this will increase your property taxes every year. If you’re going to renovate, have a budget for it!
- Furnace and Air-Conditioning
Before you buy a home, make sure to have your systems property inspected to determine how much life they have left. If your furnace has a 10-year life cycle and you purchase, that is already 4 years old, you’re halfway through its lifecycle.
- Cleaning
Maintaining smaller spaces is relatively easy. A larger home will require more effort and will be more costly. Whether you are paying for cleaning supplies or outsourcing to a cleaning company, costs can quickly add up.
- Safety
It’s always wise to set up an alarm system or motion-detector lights when you have your own place, but these extra features will cost your extra money!
- Exterior Up-Keep
Not only will you need to keep up with the gutters and roofing, you’ll also need a budget things such as lawn care, exterior lighting, and other features that are necessary to maintain. You don’t want your homes value to decrease by not keeping up with it.
- Buyer Demands
Thinking of selling? Have you been in your home for 10 years or more. Well, a lot changes in 10 years as far as technology, style, appliances. When you’re ready to sell your home, you will may have to do some upgrades to make sure your property appeals to the consumer and you are competitive in housing market.
Becoming a new homeowner is an exciting experience, but you need to make sure you’re prepared for obstacles this responsibility will throw at you. Do your research, budget for unexpected bumps in the road, and keep everything up to date. Maintenance is key!
