Being a homeowner offers many perks. Increased privacy, tax benefits, accumulated property value, and the freedom to modify the home are just some of the benefits of homeownership. Although homeownership rate has dropped in the recent years, owning a property is still very much on the mind of many Americans. And while most people anticipate the expenses associated with owning a property, there are costs that have a tendency of being overlooked. In this article we will list the most common overlooked homeownership costs.
Overlooked homeownership costs
- Property taxes
Many folks may anticipate property taxes when purchasing their home, but they fail to realize that even after the mortgage is paid off in full, property taxes will remain to be paid each month. And depending where you live, you can easily expect to pay up to $1,000 a month just for property taxes alone.
- Homeowners insurance
Homeowners insurance provides against unfortunate events that happen to and within the property. As a homeowner, property damage won’t be your sole concern, as you’re now liable for injuries that take place on your property as well. That’s why having a really good homeowners insurance policy is very important. Keep in mind that a more significant damage caused by a flood or an earthquake is usually covered only in the case that you have additional insurance. In the case that a disastrous event does occur; you will have to pay a deductible before your insurance kicks in and can surely expect your premium to go up substantially.
- Maintenance “¨
More common maintenance work like roof repair can be expected as you continue to live in your home for 10 or 20 years. Unforeseen maintenance costs such as a broken kitchen appliance, can easily break down at any moment, forcing you to shell out thousands for replacement.
As most homes come with surrounding land, no matter how small or big, it will have to be tend to. Whether you outsource landscaping services or tend to your lawn yourself, you will have to pay to keep your property looking as good on the outside as it does on the inside. Such equipment or services can amount to thousands annually.
As a homeowner, you will be apt to further invest in your home, and add upgrades that enhance your life, while also adding value to the property. Luxury intergrades, such as high tech entertainment systems, granite countertops, and in ground swimming pools are just some of the few upgrades you may wish to splurge on as a homeowner, the cost of which can easily cost thousands of dollars.
Pro Tip â‡’â‡’â‡’ More on adding green upgrades to your home.
As a homeowner, you will be responsible for waste management. When renting an apartment, your landlord will take care of garbage disposal. When you own a property, you as the landlord become liable for when and how you dispose of your garbage, services for which can cost up to couple of hundred dollars a month. In addition, you have to be sure to abide by your state’s recycling regulations or be faced with fines of up to $500.
Once you become a homeowner, you will notice that a lot of your downtime (and other time) will go toward maintaining your home. In fact, you can expect to be stuck doing all kind of tedious chores on your days off, holidays, or even worse, on workdays. It is not uncommon for something urgent to come up that requires your immediate attention. As a renter, your responsibilities toward maintaining your apartment are minimal. Even if a problem were to come up, you would likely call your landlord to come take care of it. That is why, as a homeowner, time management is important not only to your daily routine but your wallet as well.