Homeownership is a major milestone in our lives as it means we have accomplished part of the American dream. While homeowners understand the home, neighborhood, and mortgage, homeownership is more than that. Some can’t see it while others can’t place 2 and 2 together. Take a glance at some hidden costs.
All homeowners pay property taxes. The amount varies by city and state. Since it comes once a year, property taxes are easy to overlook. Expect additional costs attached to the bill such as school and road fees. The increasing or decreasing fluctuation in property tax amounts vary by home repairs, city/state laws, tax credits, and length of homeownership. It’s best to check state and city laws before purchasing a home.
Renters pay some utility bills as other bills lump with the rent. A homeowner has to pay all utility bills. Landline phone, water, light/electric, gas, cable, and internet bills fall on the homeowner’s shoulders. Homeowners must register everything in their name and pay bills in full or the minimum amount by the due date.
Interior and exterior maintenance is mandatory in homeownership. Interior jobs examples are cleaning, purging, and repairing. Exterior part examples are year-round landscaping and weed removal, sealing holes/cracks/dents, and cleaning the gutter. Expect to shell out hundreds to thousands of dollars for garden, cleaning, and power tools. For the repairs, a professional is better than DIY, so expect to shell out thousands of more dollars to fix repairs.
In most cases, repairs pile up over time due to wear and tear. Since nothing lasts forever, continuous use of the same products equals eventual replacement. Expect to pay once more for product replacement or product parts for existing items. To catch sudden and gradual repairs, the homeowner must continue to inspect the interior and exterior daily to prevent minor repairs from becoming major.
Homeowners will find out that pest control is their responsibility too. Save money for pest prevention products and professional service to combat roaches, ants, bed bugs, termites, mice, wasps, bats, and flies.
While renters believe they are spending too much money with no gain, homeownership has plenty of upsides at the cost of spending more money. If the costs are a problem, use this unfortunate reality as a sign to save before venturing into homeownership.