Just about everyone dreams of owning their perfect home. If you are financially stable and have found the right property at the right time, there is no reason you should not make an offer. However, for some, owning a home is a bit of a complicated step as there are many more costs involved in addition to the purchase price. For those who are operating on a tight budget, any surprise costs of home ownership may cause financial trouble. If you are planning on buying a house, here are some of the most overlooked home ownership costs to consider before you make your decision.
For some hopeful homeowners, the property taxes may be a bit much as they will still have to make payment to the municipality or town in addition to the monthly mortgage fee. This amount can come all the way up to $1000 a month in areas with higher priced properties. After a house is constructed, the town in which the home is situated will decide the property tax amount.
If you lease a rental property and someone gets injured on the premises, there is a high chance that the property owners will be able to pay for the damages with the aid of their insurance policy. This will not cause any financial damage to the property owners. As for a purchased home, a homeowner’s insurance policy is a must. Unfortunately, should someone face an accident on your property, there is a chance that you will have to pay higher premiums to cover their injuries and damages. Additional risks include natural disasters such as floods, hurricanes and snow damage. Water damage as a result of rainstorms is not always covered in a basic homeowner’s policy. This means that if you are purchasing a waterfront property or a property within an area with frequent heavy rain, you will have to pay a higher premium that is often $500 – $1000 higher than that of a basic policy.
Of course, if you are to buy a house and plan to live in it for the next few decades, you will have to keep up it to make sure comfort and long-term property values. Aside from routine maintenance, there is a high chance that you will have to make certain repairs now and then. The roof, floors, plumbing and windows often need repairs and will cost you money. Property upgrades also fall into the maintenance category and can actually be considered an investment that will add plenty of value to the property. If you are on a tight budget with your average expenses and mortgage payments, be sure to consider a proper maintenance budget to prevent financial surprises.
They say time is money and when it comes to home ownership, you will have to put aside a sizeable part of your time to keep the house looking and functioning at its best. Mowing the lawn, painting the doors and cleaning the windows are often done by the owners and their families and therefore, they will take plenty of time from your lifestyle.
It is very important that hopeful home owners are well aware of these costs so that they can better prepare for them. Be sure to make your choice with extreme care as to avoid future disappointment and financial strain.