6 Home Ownership – Related Expenses

Website design By BotEap.comFor most of us, the asset value of one’s home represents our largest financial asset, so doesn’t it make sense to be as prepared as possible for the most common expenses associated with home ownership? ? Although this activity is often considered an essential part of the so-called American Dream, unless a homeowner is as prepared as possible, it could turn into a nightmare! The more you know and recognize what to prepare for, the easier and less stressful this happy act becomes! With that in mind, this article will briefly attempt to consider, examine, review, and discuss 6 of the basic expenses associated with home ownership.

Website design By BotEap.com1. Down payment and closing costs: While most people know and understand what their down payment will be, because their lender tells them, many don’t fully consider many of the other associated closing costs. These include: title insurance and title search; prepaid real estate taxes and utility charges; refund to previous owners, prepaid for various items; legal costs; filing fees; etc.

Website design By BotEap.comtwo. Monthly recurring expenses: Many expenses associated with owning a home are recurring! Everything related to one’s mortgage must be considered, including payment of principal, interest, and escrow charges. It’s also important to understand some of the elements of escrow, such as property taxes, which often increase annually.

Website design By BotEap.com3. Immediate cosmetic updates: Even when one buys a house, which is considered to be in move-in condition, the new owner usually has somewhat different tastes and needs/priorities and therefore will usually want to make sure it is immediate. , cosmetic changes/updates such as paint, flooring related changes, etc.

Website design By BotEap.comFour. Routine repairs: Be prepared for routine repairs such as repairs/fixes, minor appliances, doors and locks, and all those things that everyone who has ever owned a home of their own eventually realizes, must expect, anticipate and be prepared, for!

Website design By BotEap.com5. Major repairs: One should create a reserve fund to be prepared for major repairs that are needed from time to time. These include: heating and cooling/ventilation/HVAC systems; Major appliances (such as washer, clothes dryer, refrigerator, oven/range, dishwasher, etc.); structural work (such as roof, gutters, windows, walkways, driveways, etc.), etc.

Website design By BotEap.com6. Renewals: No matter how excited one is about the house, the purchases, the priorities, the needs, etc., change, the passage of time and renovations can be indicated and necessary. Sometimes it can be related to a kitchen, or a bathroom update, while other times one may decide to expand (add on) the existing house because an owner feels they need more and/or different spaces. , etc.

Website design By BotEap.comThe more prepared one is, the happier the home ownership, the experience! Proceed wisely and preparedly!