Owning a home can be a rewarding experience, but it’s also important to remember the additional expenses that go along with homeownership, which go beyond the initial purchase of the home. While some of these costs can be the result of an isolated incident or one-time project (which can still be very expensive, and as such, should be budgeted for), some can be ongoing expenses that are frequently overlooked.
Before buying your home and as you explore your options, be sure to consider the following:
You’ll be required to pay property taxes either monthly or annually, and these taxes will vary depending on the city or county you live in. They are also based on the value of your home, so keep that in mind when determining your housing budget. For many homeowners, property taxes are almost as much as their mortgage payments.
Maintenance and repairs
When you rent a home, a landlord takes care of fixing anything that breaks. Unless it’s something you were directly responsible for, the landlord will also cover the costs as well. As a homeowner, you are always responsible when something goes wrong, and you are also responsible for regular upkeep and routine maintenance on your home. Not only is this something you must take the time for, but it’s also an expense to budget for.
Are you purchasing a home that’s part of a homeowners association? If so, you’ll need to pay HOA dues. You might be required to pay these fees monthly, biannually, or annually. They could range widely, and depending on the neighborhood, might only be a few dollars a month—or a few hundred dollars a month. Living in a home that’s part of an HOA has both its advantages and disadvantages, but regardless of whether you like or dislike living in a HOA-regulated neighborhood, you’ll still need to account for the added expense.
Most people need to finance their home by taking out a mortgage. A portion of your monthly mortgage payments will go towards interest, which is just the cost of borrowing money. Even if you do have a good interest rate, this is still an added expense of homeownership to consider.
Possible utility bill increase
If you’re moving into a much larger home, there is a good chance you’ll see an increase in your utility bill. If this means more rooms with electronics, extra lights being used, and more square footage to heat up and cool down, it’s almost unavoidable.
Do you need money to buy a home? If you’re receiving structured settlement payments, you may be able to get your money sooner, rather than wait for the payments to arrive. At Peachtree Financial Solutions, we help customers who share similar goals by purchasing their future payments and sending them their money faster. Whether you need cash for your down payment or to take care of closing costs, contact Peachtree Financial Solutions today to learn more about your options.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.