Posted on: 14 February 2017
The first time you buy a home, you'll typically be conscientious about the purchase price and how much your mortgage payments will be. While keeping these financial matters in mind is certainly important, you shouldn't lose sight of the other expenses that come with home ownership. If you're accustomed to renting, you may have paid your rent and a couple bills, but nothing beyond that. However, when you own a home, you'll need to budget for some other expenses. This isn't to say that owning a home is out of your reach — rather, when you keep all of the upcoming expenses in mind, you'll be able to buy a home that suits your budget. Here are some other expenses to expect.
Property tax is something that didn't concern you when you rented, but it's a standard expense involved with owning a home. When you're browsing homes for sale, the real estate listings will often include the amount of property tax that is paid annually on the property. If this information isn't clear, make sure that your real estate agent provides it for you. Depending on where you live, the manner in which you'll need to pay your property tax can differ. In some areas, for example, the cost will be broken down into four installments that are due every three months.
While some renters have rental insurance, many do not. When you buy your home, however, you'll need to get home insurance. Home insurance is valuable because it protects your home and your possessions against a number of undesirable things, including fires and theft. It's common to pay your home insurance monthly, although some insurance providers may offer you a better rate if you pay this amount as an annual lump sum. You can often get a favorable home insurance rate if you bundle this service with your auto insurance.
There can be a variety of other ownership-related expenses. If you own a condo, for example, you'll need to pay condo fees. These should be outlined in the real estate listing. You may also face additional expenses that you didn't directly pay as a rental tenant. For example, if your rent in an apartment building included the water, you'll be responsible for paying a separate water bill when you own your own home. If you're unsure of the extent of expenses related to ownership, ask for some additional details from your agent.Share