Purchasing a new home is an important financial decision. The new homeowner is likely aware of the immediate costs associated with the purchase, such as closing costs and the monthly mortgage payments. However, there are other expenses that should be taken into consideration when purchasing a home. The taxes, insurance and maintenance costs should all be budgeted for before signing paperwork on a property.
1. Taxes and Insurance
Although the price may be right as far as the mortgage is concerned, the property taxes and insurance costs may come as a surprise. Depending on the area, the taxes and homeowners insurance Woodbridge VA can vary widely. It is a good idea to get quotes on insurance and to look up tax rates for an area before making a purchase.
2. Maintenance Costs
Keeping a house clean and in good repair often requires an investment of time and money. Cleaning supplies, tools, maintenance equipment and other miscellaneous expenses should be accounted for when purchasing a house. While buying an item such as a lawnmower may seem like a one-time expense, gasoline, oil and tune-ups will need to be paid for during the lifespan of the machine.
3. Major Replacements
Roofs, furnaces, hot water heaters and major appliances do not last forever. Even with regular cleaning and repairs, they will eventually break down and need to be replaced. Keeping track of the age and condition of major appliances can help homeowners budget for replacements in advance and avoid financial hardships. Outdoors, the driveway, siding and porch should all be monitored and repaired to avoid premature wear and tear, but they will also need to be replaced eventually.
There are many perks to owning a home. Building equity, having a secure residence to live in and building relationships with neighbors are all wonderful. However, all of the costs should be considered before making a final decision about where to live.