Common home ownership costs can build up over time, especially if you haven’t planned for them. By understanding these common home ownership costs, you will be able to budget more effectively for keeping your property in the best possible condition. Our team at Besst Realty is dedicated to ensuring that you are satisfied with your purchase. Here are a few common home ownership costs that you need to be aware of.
Deciding what you can Afford
When you plan to purchase a home, it is extremely important to take a close look at your budget. It is commonly agreed that you shouldn’t exceed 28% of your gross monthly income in housing expenses. Keep this in mind when you are trying to decide what you can afford when purchasing a home.
Your mortgage payment goes beyond simply paying your mortgage. There are several expenses that are combined during your monthly payment. Your mortgage payment includes paying both the principal and interest of your mortgage. You also need to plan on paying property taxes, insurance expenses, HOA dues, and private mortgage insurance costs.
You may have experience paying utility bills if you have rented previously. However, this doesn’t mean that you can overlook these expenses when you purchase a home. Home ownership includes paying for all of the utilities that are used within the property.
Maintenance is important for your property. It will help to ensure that your building stays in good condition. In most situations, providing the appropriate maintenance will help to reduce potential repair expenses. Planning for regular maintenance is an important home ownership cost to keep in mind.
Furnishings and Appliances
When you purchase a property, you will also have to consider how you intend to furnish the property. Your furnishings and appliances will often add to the expenses required in moving into the property.
Keeping an emergency fund can go a long way toward help handle repairs. When damage is present in the building, fast repairs can help to prevent the damage from escalating.
When you decide to purchase a home, it will be important to consider the down payment. This is usually around 20% of the purchase price. It may require a bit of saving to ensure that you can make the down payment on the property that you want. It is also important to consider closing costs that you may experience. These can include everything from HOA fees to property inspection fees. Plan on paying around 2-7% of the purchase price for your closing costs.
When you first purchase a home, you will have to pay to move into the home! The total expenses for this will depend on how you proceed with the move. At a minimum, you will need to pay for moving supplies. You may also need to pay for a truck rental or professional movers. On average, it costs between $500 and $2000 to fund your move.
Being aware of these common home ownership costs is an essential component of purchasing property. Working with a realtor will ensure that you are able to find the best possible home that meets your needs and your budget. To learn more about some of the most common home ownership costs or how we can help you find the best property for your budget, contact us at Besst Realty today!