What are the costs and expenses of owning a home?
Buying a home is considered as achieving one of the top American dreams by many people. But becoming a home ownership isn’t as easy as it looks. Your large monthly rent payments for the apartments is a total waste at the end since the money or the apartment room will be gone as soon as you make a payment or leave the building, respectively. But expenses of owning a home go beyond just making a monthly mortgage payment on time. There are many other costs that you have to take into consideration before starting to buy and owning a house. Here are list of some of the most common home ownership expenses that are must have and unavoidable and you pay them every month or year:
Home insurance: This is a requirement before you even borrow money from mortgage lenders. You would wonder why lenders worry about insuring house that is going to be owned by you. The answer to this is that you haven’t owned the house completely and the lender still owns a big part of it, depending on how much your down payment for the house was. For that reason home owner’s insurance will be there from the beginning even though you might feel there is no need to have insurance for your home, which averages around $800 per year.
Property Tax: Then there is this property tax, which many family households hate. But property does help city and the state run and helps our neighborhood safe and pretty. The amount of taxes you will have to pay on your house will depend on mainly two factors: where the house is located and its total value. Some city charge more than others, and higher the value of your house, higher the property tax will be.
Utility bills: There a so many utility bills that start to pile up when you own a house; it includes water, electricity and heating bills.
Waste services: Yup, you can’t just throw the garbage and trash in your house somewhere outside anywhere. You have to call the waster and recycle management services to order their bin. They empty it every week. The cost can vary upon how big of a trash bin you will need. Also you need to recycle things like plastic, paper and cans.
Here are some of the cost of home ownership that you pay only once in a while, it includes home repair and maintenance, remodeling, lawn care, wall paint, home furnishings, furniture, cable and phone installation, appliances like washer and dryer, plumbing, pest control, and many more.