The Cost of Owning a Home
Many homebuyers – 1st timer and seasoned veterans – find themselves spending more than they thought to bring their new home up to expectations. The cost of owning a home, especially in the first year, is higher than you might imagine. You might be asking yourself: So what happens after I buy a home? What are the costs involved once I buy a home? Let’s dig in!
Here are five costs to expect once you buy a home:
You turn that knob and nothing happens. It’s inevitable. Stuff breaks. No worries! When that first repair comes along, you might find yourself caught flat-footed. We recommend maintaining a savings account of at least $1,500 to cover home repair emergencies.
Finally, all of those Pinterest photos you’ve been pinning for years can become a reality…all at once! As for decorating and furnishing your new nest, budget for that, too! It’s easy to get carried away with immediately purchasing everything you think you need. Salespeople will push 0% financing and easy monthly payments, but this can cause more headaches than it’s worth. You don’t need everything all at once. You’ve got a new mortgage payment – new credit card bills can wait.
Lawn mower. Weed trimmer. Leaf blower. Fertilizer. Fertilizer spreader. Clippers, shears, and shovels. Your property can and will take up as much as the house itself. Look for used (but well maintained) gear to get started. Ask a friend! You never know when someone will want to sell a perfectly fine lawn mower because they want an upgrade. If you are buying new, keep in mind the top of the line isn’t usually practical or necessary. You can usually do everything you need while spending less!
Apartments often have some utilities included in the rent. Now that you’re in your new house, you’ll be paying for everything. Water, electric, gas, garbage, internet – the bills are all yours! And, if your home is larger than your apartment, these bills will typically increase. Keep in mind that some utilities, like Consumers Energy, allow you to set up budget plans for electricity use that spread your payments out across the year.
The Tax Man
One of the certainties of life, right? Taxes. Whether you set up an escrow account or are paying yourself, property taxes are a reality of every home. Your “best friends in home finance” at JPAL Mortgage will help estimate your property taxes and let you know what to expect when the assessor comes to calculate the property taxes you owe. This adjusts every year and is certainly a major consideration when owning a home.
Budgeting For Home Life
Everyone needs a budget to see exactly where their money ends up each month. You don’t need to watch every penny, but a general idea of how your finances are flowing will put you on solid ground and give you peace of mind.
A House, Your Home
There’s no way around this simple fact: the cost of owning a home is high! But your home is the place where your family will make new memories, shelter through storms, feast at holidays, grow together, and live life to its fullest. It’s an investment of money, blood, sweat, and tears. It won’t be easy, but with a little planning and a lot of hard work you’ll find immeasurable rewards.
JPAL is here to help!
Did you know that we have over two decades of combined banking experience? Let’s work together to take control of your finances and put you on track to succeed in your new home. Contact us today to start your home buying journey!