If you have thoughts of buying and owning your first home especially now that the prices of median homes are at five-year low nationwide, you should take note before rushing to final decisions. The overall cost of home ownership might involve a lot more than what you might think. Owning a home always comes with a number of expenses which you did not encounter when living with your parents or renting. The extra expenses/costs can result to strains on your monthly and daily expenses if you did not plan or prepare for them. Therefore, all you need to do is to plan and prepare vividly for the home buying activity to ensure that you don’t get unnecessary financial strains on the process due to lack of knowledge on the cost of home ownership. The following are the expenses and costs of owning a home which you should plan and prepare to meet for successful home buying and owning. To start your search in Charleston and find some great tools for calculating the true cost of home ownership visit Charleston Real Estate at gopremierone.com
1. Insurance costs
It is important to note that before you can get a mortgage, most of the mortgage lenders will require a proof of the homeowners insurance. Insurance premiums will vary depending on certain factors such as; where you live, the age of your house, the size of the house and the type of the house. For example, if you own or buy a old house the cost of insuring it will be high because the cost of repairing any damage to a old house will be high when compared to new standardized houses. Therefore you need to be aware of the insurance costs of your home and know what can cause their rates to go up or down.
2. Property taxes costs
As a home owner, you can’t escape the taxes expenses. The cost as a result of property taxes depends on the value of your home. The more expensive your home is, the more you will need to pay in taxes. You will have to pay city or county property taxes and also the state property taxes. Planning and preparation for these costs are necessary.
3. Mortgage costs
The amount of mortgage costs will depend on the amount you borrowed, the period or amount of time you will have to pay the loan and the rate of interest on your home loan. If you tend to finance your home, then the monthly mortgage payments go towards the principal and interest on the principal. Therefore, plan and have knowledge on the interest rates.
4. Utilities costs
The utility costs and expenses include; water, electricity, heating, cooling and natural gas expenses of your home. You might ask for a record of house utilities expenses from the seller so as to estimate your expenses depending on the size of your family/home.
5. Maintenance costs
Maintaining your home is another cost that you can escape. All the repairs regarding any part of the house/home will always be your expense since you are the owner. Therefore, you should include the estimated costs in your financial budget and plan.
6. Appliances costs
These are costs as a result of buying the appliances that are necessary and are required in your home. Such appliances include; dyers and washers.