Property Ownership Costs You Should Anticipate

26 Oct

After years of renting out a place, you have finally decided to own a home. If you think there is lesser money involved in homeownership, you may want to look twice. The responsibilities that used to be held only by your landlord have not become your accountabilities too. As a homeowner, you will be responsible in paying for property taxes, repairs and maintenance, utilities, insurance as well as the decorations and improvements for your home.

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Here are the detailed costs of ownership you should be prepared to pay when you become a homeowner.

  • Closing Costs – These can add a considerable amount of money during your loan settlement. Oftentimes, closing costs are negotiable and may be different from one state to another. Being a homebuyer, you may have the responsibility over these fees. In some cases, you will need to pay a portion while at certain times, the seller assumes full accountability. The offer may contain such expense.
  • Property Taxes – As you may already know, these taxes are the main revenue source in municipalities, counties as well as in municipalities. Living in a condo unit or a community may charge you fees aside from the property taxes. This is true for condos and communities that evaluate the residents for special taxes. Know your yearly obligations and prepare your budget. Not doing so may leave you shocked of the taxes and fees when they become due for payment.
  • Insurance – Private Mortgage Insurance may be required if you paid 20% less than the purchasing price. PMI allows you to purchase a property at a lower down payment. Homeowner’s insurance is another type of insurance involved in owning a property. You cannot obtain a loan if you do not have homeowner’s insurance. But this does not cover everything specifically if you are in a place where there are frequent natural disasters. If you have valuable items, a rider is necessary for their coverage.
  • Repairs and Maintenance – If you have purchased a fixer-upper, most likely you already have an idea of what is ahead. Add 20% on top of the time you invested plus the sweat and money you spent. But no matter how elegant your house is, it still needs maintenance and probably repairs too. All of these will entail spending money.
  • Decoration and Enhancements – There is a sense of fulfillment that comes from having the freedom to decorate and improve your own home. You can change the theme, appearance and any other things you want to be redesigned in your house – you can do as you wish. But you should prepare a budget for all of these plans as well.

 

Do not be surprised if you receive major expenses every year. At times, they may cost hundreds or thousands of dollars. In order to have enough for all these costs, consider opening a savings account intended for your property.

Pacific Transfer Logo

Pacific Transfer Logo

Pacific Property Transfer Company can help you dealing with the whole process and guide you to the best decision.

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