Five Hidden Expenses All Homeowners Should Know About

 

 

 

Owning a home comes with countless perks and advantages. You have a place to call your own which you can decorate as you please, you’ll benefit from greater financial stability, and you can even make the most of tax deductions. When you’re a homeowner, you can start building equity and wealth. However, there’s also a long list of expenses you’ll need to consider. 

Before you get your sights set on the house of your dreams, it’s important to consider what this property will cost you in the long run. To help you get a clear idea of your future overheads, we’ve curated a guide of five hidden expenses all homeowners should know about. Keep reading to find out what they are and how you can account for them.  

Moving Fees 

Moving into a new home can be more expensive than you think. Unless you're starting from scratch, you’ll probably need to hire a reputable moving company to help package and transport your possessions. This can cost anywhere from $800 to $2,500. However, it’s important to get the job done professionally, so be prepared to pay for high quality services.   

Landscaping Care 

If you’ve bought a property with a garden, you’ll probably need to invest in some regular landscaping care. However, this is also the perfect excuse to let your green thumb shine. You can save hundreds of dollars by doing up the garden yourself, not to mention it can be incredibly relaxing.  

Home Insurance 

Home insurance policies can safeguard you from future financial hardship and reduce the costs of important repairs. With a great policy, you won’t have to worry about finding the cash to replace your broken Air Conditioning unit in the summer. Here you can find one of the reputable home insurance policies in the industry. 

Property Taxes 

When you purchase a property, you’ll need to make things right with the tax department. These will vary state by state, with the lowest property tax being found in Hawaii and the highest in New Jersey. However, there are some scenarios in which property taxes are exempt, so we recommend you do your research to see if you qualify. 

Closing and Legal Fees 

When you purchase a home via a realtor, there are quite a few closing and legal fees to pay. Thankfully, some of these are split between the seller and buyer. Buyers should always expect to put aside 2 to 5% of the home purchase price to account for closing costs.  These closing costs could include, escrow, notary, appraisal, bank processing, and homeowners’ association transfer fees. 

All in all, becoming a homeowner is a goal that everyone should strive for. Most people think that all it takes is a deposit and a few years of mortgage payments. However, these are only the most predictable costs. The truth of the matter is that it takes much more to secure and maintain a home. That’s why it’s important to be aware of your future costs and budget accordingly.