Purchasing a home comes with other expenses outside of the cost of the home. All these expenses are important factors to know what your final costs will be for your home, so you can plan accordingly. Among other factors you need to account for, here are the biggest to remember!
When you own a home, you need to be aware of maintenance costs. To budget for these costs, The Balance says it is a good rule of thumb to set aside 1% of the purchase price of the home for maintenance. This can change depending on the age of your home and square footage. There are many aspects of your home that need to be factored into maintenance. You need to be aware of your HVAC system, your appliances, yard care and repairs, your roof, among other things that can break down periodically.
When you own a home, you need to make sure your home is insured. Home insurance is essential to protect your home from all the ways it can be damaged that are out of your control. According to American Roofing, home insurance will cover a roof if it was damaged in a storm or accident. It can help to cover your home in case of a fire, flood, or theft. Of course, your home insurance depends on what you want covered, the features of your home, and the value of your belongings. Home insurance can also cover liability if there is damage to someone else’s property.
No matter if you paid off your home, or if you have a mortgage, The Ascent says you will need to pay property taxes on your home each year. These costs can vary greatly depending on where you live. If you do have a mortgage, this yearly amount is considered with your lender, and you make monthly payments on this. These payments are put into an escrow and paid in the full amount on your behalf when the bill is due. This is something to factor into homeownership, because it does change the amount you are spending on your home each month.
When you purchase a home, there are many expenses you need to consider. Properly accounting for all your expenses will help you be able to better budget and plan for what you need to pay monthly and yearly. Expenses you need to account for when you own a home are maintenance costs, home insurance, property taxes.
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