Hidden Costs of Ownership – Do You Know What to Expect?
From home insurance, to maintenance and property taxes, the costs of owning a home don't stop when you sign on the dotted line, and many of these costs are overlooked, or "hidden" to new home buyers. While searching for homes with your Chatham-Kent Realtor, be sure you discuss all of these "hidden" costs that are not associated with the purchase price of your home, and include these figures into your overall budget. Here are a few of the places your Chatham-Kent realtor should advise you to be aware of hidden home ownership costs:
Home Maintenance and Repairs
From leaking pipes, to a damaged roof, or simple lawn maintenance, taking care of your home, new or old, costs money. When considering what you'll be able to pay each month as a portion of your mortgage, factor in that from time to time, an appliance or hardware in your home will die, and you'll need to pay for repairs or maintenance. If your Chatham-Kent realtor has helped you find a fixer upper, these costs might be expected, but many overlook aging furnaces or roofs when considering the cost of home ownership.
Decorating Costs
One of the first thing new home owners like to do is to infuse their own personal decorating style into a home. Remember however, this does not have to be done all at once. Whether it's tearing down old wallpaper, painting, or hanging new curtains, you'll want to make a new home feel like your own, but these costs can quickly pile up blowing your budget. If you do plan a major redecoration of your home, pre-plan and discuss this financial wish with your Chatham-Kent realtor.
Homeowners Insurance
Homeowners insurance is an important and mandatory part of acquiring a piece of Chatham-Kent real estate. It protects your investment from things such as fire, flood, and other disasters. Although not everything is covered, home insurance is a cost that can range between a few hundred and a few thousand dollars each year depending on the value of your home and belongings. Speaking of belongings, homeowners insurance will also protect the valuables in your house including furniture, televisions, other electronics, and jewellery.
Property Taxes
Property taxes are one of the largest "hidden" expenses most homeowners discover. Luckily, your Chatham-Kent realtor should be able to tell you the property taxes you'll pay for each home you look at, or the current owners should be willing to show you documentation of these prices. Property taxes are something you should consider when budgeting your monthly mortgage payments and overall purchase price.
Closing Costs
Not every situation will have the same closing costs, but all home purchases will involve some form of after purchase closing cost. These costs often include the appraisal fee, home inspection fee, fire insurance, provincial sales tax, land survey fee, legal costs, new home warranty, and the mortgage application and processing fee.
Early planning and considering many of these costs when you discuss your budget with your Chatham-Kent realtor will keep you debt and worry free. Check out our Real Estate Resources Page for more useful tips, or call 519-360-0141 to talk to me in person.