Being a homeowner is expensive. It’s not just the initial down payment that you need to consider. Owning a property comes with lots of hidden expenses.
Most people have regular mortgage repayments to make. But even those who have used cash to buy their homes have ongoing costs.
From paying the utility bills to making monthly payments for the best home warranty and home insurance, being a homeowner has ongoing costs that are unavoidable. That’s not to mention the unpredictable and unexpected costs of maintenance and repairs in your home.
Most of us are prepared for the monthly utility bills but we forget about the other hidden costs of being a homeowner. Here are some of the ongoing costs that you need to keep in mind when you own a property.
Property Taxes
As a homeowner, you are required to pay property taxes as determined by your local authorities. The amount that you pay will depend on your property’s location, size, and value.
Your property taxes can add up to anywhere from a few hundred dollars for smaller properties to a thousand dollars a month for larger, more expensive homes. As a general rule of thumb, property taxes sit around 0.5 to 1% of the property’s total value.
Unlike your utility bills, you have no control over your property taxes. The fees are determined by the authorities and they are a mandatory payment that every homeowner must make.
Homeowner’s Insurance
Most banks include homeowner’s insurance as part of their mortgage deals, so the ongoing insurance payments will not be unexpected when you purchase your home.
Often, the payments for your home insurance are lumped together with your mortgage repayments. The type of insurance that you choose will affect the total cost of your repayments, with higher levels of coverage being more expensive.
Home insurance prices can rise depending on the state of the housing market. You may also want to adjust your level of coverage depending on the value of your belongings inside. If you’ve added lots of cool tech items or extra features into your home, you might want a higher level of insurance for the extra protection.
Make sure to check what is included in your homeowner’s insurance before you choose a certain plan. Otherwise, you might assume that certain belongings are covered by your provider when they’re not covered at all! This goes for checking if your home is covered for weather-related incidents, especially if you live in an area prone to extreme weather, such as hurricanes. Knowing where you stand and hiring a hurricane lawyer can help you ensure your home and belongings are protected as you need them to be.
Landscaping Costs
Whether you want to do the work yourself or hire a professional gardener, keeping a clean and well-maintained exterior on your property is one of the many ongoing costs of being a homeowner.
If you own a property that has a lot of outdoor space, you will need to pay for its upkeep. Not only does maintaining a pleasant exterior make your property look great, but it might also be mandatory by law.
In some areas, you may be legally required to keep your bushes trimmed and your garden looking presentable. This is especially the case if your property extends into a busy, public area. Plus, hanging branches can cause damage to your property itself and may cause issues with your outdoor plumbing system.
