Being a homeowner does mean more responsibility than being a renter. Whether you’re buying a home for the first time or just trying to prepare for homeownership, here are 8 major costs all homeowners should be aware of and prepare for.
#1. Property taxes.
As a renter, the landlord is the owner of the property will pay property tax but once you are a homeowner your self, you’ll be responsible for the property tax. This will a percentage of the value of the home toward state and local property taxes. Property taxes can run from as little as $500 per year up to $8000 a year in high income or high market value places. You can add property tax on your mortgage payment to ease the burden slightly.
#2. Heating and cooling.
The homes HVAC system will be vital to heating and cooling systems whether it’s a furnace, heat pump, baseboards, or other forms of heating and cooling. These also may need to be repaired and replaced over time. New furnaces can run upwards of $4500 whereas new central AC units can cost an average of about $3600.
#3. New roof or roof repairs.
Probably one of the least noticed parts of a home yet one of the most vital is the roof. It can be easily damaged by sun, high winds, erosion from ocean water, storms, and hail. Homeowners insurance will cover a lot of damage to the roof but only after a deductible and most of the time your premium will go up. Keeping your roof in good standing will save the life of your home.
#4. Pest control.
When you first purchase a home you’ll have a home inspection and this usually includes some form of pest inspection. Whether it’s rats, mice, other kinds of vermin, termites, or any other little pest, eradicating these nuisances can run between $200-$2000 but repairing damage if left untreated could go upwards of $10,000.
#5. Landscaping costs.
Maintaining landscaping, especially complicated or extensive landscaping can take a lot of time and money. If you have to redo the entire lawn and you’re looking at the grass you could pay up to $3000 or more for having a new lawn professionally installed. Dead tree removal, sprinkler systems, pruning, and trimming all take time and money. Sometimes a more minimalistic landscape approach is the easiest and most cost-efficient.
#6. Foundation issues.
Foundational issues and structural foundations, especially along the Gulf Coast of Florida can be extensive and costly to repair. It’s important to understand how the home was constructed and what your responsibility is to keep the home in good working order. To have a foundation wall excavated and stabilize could cost as much as $25,000.
#7. Water damage.
Any water damage can be a costly repair if not taking care of immediately.
#8. Homeowners insurance.
Homeowners insurance is required by all lenders as they need to protect their assets. You can shop around for the best deal but make sure it covers everything that you expect it to cover. Earthquake insurance, flood insurance, and certain personal property insurance may not be covered so if there’s anything you’re concerned about, ask your real estate agent about additional insurances and what you should be concerned about. These can add anywhere from $50-$500 a month to your monthly mortgage payment.
I don’t tell you all of the stuff to scare you but for you to be aware of and be proactive against. When looking at homes be aware of these costly additions or repairs so that your well prepared for the future.