The Costs of Homeownership Beyond the Sale
March 28 2017
Saving up for a down payment and closing costs, determining how much you can afford and qualifying for a loan are key steps in buying a home. But what happens once the dust settles? Plan ahead so you won't be caught off guard by other costs. Here are a few areas where new homeowners often end up spending after the sale:
New Household Items
Buying new furniture and decorative items can be a fun part of moving into a new home. But there are other less exciting purchases, such as new locks for entry doors or a new water heater, that can put a dent in your wallet. To help limit financial surprises, put some savings aside specifically for this purpose and identify what you'd need to buy or replace in each home you consider.
Maintenance and Repairs
For most homeowners, repairs and maintenance cost 1 to 4 percent of their home's value annually. Factor these regular needs into your budget so when it's time to replace the roof or fix the plumbing, it won't be a shock to your bank account. In addition, you may want to consider a home warranty to help offset repair costs if you are worried about outdated systems.
HOA Fees and Taxes
If your new home is governed by a homeowners association, factor in the monthly or annual dues that maintain the buildings, amenities and common areas. Additionally, keep property taxes in mind when making your monthly or yearly budget.
By planning for all of the responsibilities that come along with homeownership, you can enjoy your new place without financial stress.