10 Things A Homeowner Will Pay For

So, you've finally purchased your dream home. Congratulations! However, home ownership comes with its fair share of expenses beyond the initial purchase price. From routine maintenance and repairs to property taxes and insurance, understanding these additional expenses is crucial to effectively budgeting your finances and avoiding unwelcome surprises. Let's dive into the top 10 hidden costs every homeowner should consider.

Expenses of Owning a Home You May Not Consider

Property Maintenance and Repairs

One of the ongoing expenses of owning a home you must budget for is property maintenance and repairs. Regular upkeep is necessary to ensure that your home remains in good condition and to prevent any minor issues from turning into expensive repairs down the line.

Home Maintenance Costs

Maintaining your home involves various costs, including HVAC maintenance, plumbing repairs, and landscaping expenses. HVAC servicing is essential to keep your heating and cooling systems running efficiently, but it does come with a cost. It is recommended to have your HVAC system inspected and serviced annually.

Plumbing repairs are another common expense that homeowners encounter. From leaky faucets to clogged drains, plumbing issues can arise unexpectedly and may require professional intervention. 

If you have a Porch Whole Home Warranty Plan, you can have a professional handyman handle all of your home maintenance issues. 

Unexpected Repairs

Even with maintenance appliance and system malfunctions can happen. Unexpected repairs can catch homeowners off guard and lead to significant expenses. Create an emergency fund. Setting aside a portion of your income each month can help cover these unforeseen expenses without causing financial strain.

The alternative is to invest in your financial security by purchasing a whole home warranty plan. For a monthly fee and service call you can get your home running like new faster and cheaper than doing it yourself. 

Property Taxes Insurance

When you own a home, you will be responsible for paying property taxes based on the assessed value of your property. The amount you owe in property taxes will vary depending on the location of your home. Budget for these taxes and be prepared for potential annual increases.

Home Insurance

Home insurance is another cost to consider. If you have a mortgage, most likely you had to purchase a home insurance plan. It protects your property and possessions in case of damage or theft, and protects the mortgage holders investment in your home loan. The premiums for homeowners insurance can vary based on factors such as the age and condition of your home.

Homeowners Association (HOA) Fees

For homeowners in a community with a homeowners association (HOA), there are additional fees to consider. HOA fees cover the cost of maintaining shared amenities, such as community pools, parks, and common areas. These fees can be monthly assessments or occasional special assessments for unexpected expenses. Homeowners should budget for HOA fees and be aware of any potential increases.

Utilities 

You'll be responsible for paying your utility bills, including electricity, water, gas, and waste disposal. Budgeting for these monthly expenses is essential to avoid any financial strain.

Mortgage Insurance

If you had a down payment of less than 20%, your lender might require you to have mortgage insurance. This additional cost protects the lender in case you default on your loan and should be factored into your monthly budget.

Home Security Systems

Ensuring the safety of your home and loved ones is a top priority. Investing in a reliable home security system, including monthly monitoring fees, can be an important expense to consider.

Landscaping and Outdoor Maintenance

Maintaining curb appeal and a well-kept yard involves regular landscaping expenses, including lawn care, tree trimming, and garden upkeep.

Renovations and Home Improvements

If you plan to make upgrades or renovations to your home, such as a kitchen remodel or bathroom makeover, allocate funds for these projects as they can be substantial expenses.

Unexpected Emergencies

Finally, have an emergency fund set aside for unforeseen events like a burst pipe, roof leak, or damaged foundation. Financial preparation for emergencies will help alleviate stress and ensure a swift resolution.

Understanding and accounting for these hidden costs of homeownership will help you develop a comprehensive budget and financial plan that enables you to enjoy your new home without any financial strain or unexpected surprises. Remember, preparation is key to successfully navigating the costs of owning a home.