re you a new homeowner who has recently got the keys to their new space? Are you super excited to settle in and decorate your house like you always wanted? Buying or owning a home itself requires a considerable investment. Many people spend their whole life savings on a downpayment to secure their dream home. If you are figuring your monthly costs and calculating how much you can afford, the next step is to consider the hidden costs that most new homeowners are unaware of.
To help you set up a financial budget, we have outlined some of the most common hidden costs every homeowner faces. Let’s discuss!
5 Hidden Costs of Owning a Home
If you are a new homeowner or planning to purchase a new home, here are some hidden costs to keep in mind:
1. Property Taxes
You might be thinking that you are already paying thousands of dollars each month for your mortgage, so no additional costs should exist. However, many people forget about the property taxes, which have to be paid based on the value of your property and the area you live in. To calculate your estimated taxes, you can visit your town’s tax website online. Also, keep in mind that your taxes typically increase as the years pass, so you need to budget enough.
If you move from an apartment to a house, your utilities will increase due to the larger space. Make sure to consider your financial budgeting for your monthly expenses on utilities. Some everyday utility expenses include electricity, water and sewage, gas, and internet. Like your Internet provider, some utility companies might also request an upfront cost or deposit to start your services.
3. Lawn Care
Do you remember that front yard you fell in love with on your first visit to the house? Yes, that lawn also requires regular care and maintenance to keep it in top shape throughout the year. Lawn care covers various costs such as mowing the grass, watering the plants, and even using a sprinkler water system.
Have you ever been to a friends’ or a relatives’ place and wondered how they could keep their place so clean? Cleaning your home requires various cleaning supplies, which will cost you money. Not only that, but your schedule may need you to hire someone to do a weekly cleaning of your home.
5. Regular Maintenance
If you lived in a rental before, your landlord must have covered and taken care of your regular maintenance, such as plumbing. However, when you own a house, you are responsible for the monthly maintenance yourself, from plumbing repairs to repainting the interior and exterior of your home, mowing the lawn, fixing appliances, and repairing heating and cooling systems. Along with all these maintenance requirements, you will need to consider the tools and equipment required for these routine maintenances.
How Can I Manage Hidden Costs?
The burden of hidden costs can cost you your peace which is why you should closely monitor and plan before buying a home. If you don’t have enough money to cover the hidden costs, wait until you have the proper budget.
Contact a Reliable Financial Advisor to Discuss Your Needs
Contact a qualified Lancaster refinance company to discuss your options if you want more information on navigating the hidden costs of owning a home.