Investing in a house is exciting and since last two decades it has become affordable for every American. Moreover, before accepting the keys to their dream house the person must recognize the hidden costs that come with the homeownership.
Remember that while buying a house there are several unavoidable home expenses, which will come your way.
1. Landscape maintenance– A beautiful landscaped big yard is the dream of every person desiring to buy a house. It can be used for barbequing, hosting small party, or playing football with family and friends. Nonetheless, people are hardly aware of the maintenance cost and time necessary to preserve it. Watering, land mowing, and weeding can cost thousands every season.
2. Comfort systems – When the comfort systems including furnace, water-heater or AC are working well you hardly think about them, but as soon as they fail they bore a hole in your wallet. Water heaters have to be replaced say after eleven years. Older comfort systems can increase your utility bills that can probably set back your monthly budget. Upgrading old systems can be expensive.
3. Property tax – Being a homeowner you will have to pay property tax that usually rise every year. They vary according to the location and the home’s total value. So, make certain that you pay the extra tax included.
4. Insurance – Many factors have to be considered to insure a house. You may have saved buying an old house, but insurance will be costly because the cooling, heating, and drainage system are old and at more risk of disaster. Your credit scores will also be monitored regularly and insurance rates can be increased, if you fail to pay even a single mortgage loan. Additionally, if your house is situated in the earthquake, tsunami, flood or volcano zone, then the risk level is high. What’s more, you have to pay for hazard insurance.
5. Pest control – You will have to deal with termites, cockroaches, rats, bats, mice or bed bugs. Regularly having your house pest-controlled becomes a necessity or in future you will have to face a lot of damage to the floor or furniture due to invasion by varmints.
6. Home appearance – Enhancing the home’s appearance is usually considered by new homeowners. They are anxious to display their personal taste and style. It may include landscaping, re-painting the house, adding shutters, investing in new furniture or adding a patio. All this improvement can rapidly add to the homeowner’s unexpected expense.
7. Repairs – Regular maintenance is necessary to keep everything top-notch. Major systems like electrical, roofing and plumbing system must be working efficiently because repairs can unbalance your budget. Change air filters and clean the gutters regularly. Basic knowledge of plumbing and electrical intricacies is necessary for every house owner.
8. Emergency expenses – Having a large tree lined streets with friendly neighbors make you smile daily. However, the crack in the side wall caused by the tree root cost hundreds of dollars for the repairs. Check with the local municipality about the neighborhood costs. Don’t forget that power failures basically happen at the wrong time – when it is too hot or too cold. You will desperately have to invest in generators, which will need refueling often.
9. Cleaning – Rushing to the office early can make cleaning a daunting job. If you have bought a house with one storey then you will have to invest in another vacuum along with extra cleaning supplies. Hiring a cleaning person cost plenty and doing it yourself needs time and energy.
10. DIY – ‘Do it yourself’ is the latest trend. Build your own patio, fireplace, bathroom, or adding a new suite is actually not hard. Just go through the home improvement channels and know DIY technique. In this way, you save plenty on labor cost, but without your knowledge you may be wasting materials and in the end you may have to call a professional to complete it.
Considering the above costs helps you to plan your budget before buying a new home. You need to be always prepared for surprising expenses around the house. If homeowners are unprepared then unpredictable financial surprises can ruin them.
Robert works with John D Wood, which is one of the oldest names in the real estate business in London. They have been offering some of best deals on residential properties for decades now.