Owning a home can come with its list of challenges. Many of these challenges have to do with upkeep, maintenance and general chores. However, some of the challenges have to do with fiscal responsibilities. Not only does home maintenance cost money, you also have to worry about insurance, fees, utility expenses and much more. As a homeowner, preparing for these costs is important if you want to devise your budget accordingly. And for people thinking about purchasing a home, it is critical to know what some of the miscellaneous and necessary expenses are so that you can be sure that you truly have the money to purchase a new home. Here are the five biggest expenses homeowners face unexpectedly.
Upkeep. Indeed, homes cost a lot of money to keep them in good shape. From top to bottom, your home will have a checklist of maintenance chores that you need to do to keep your home from looking disused and unkempt. Of course, there are the simple expenses, like keeping your home clean, but then there are the biggest expenses, like repainting your home, refinishing floors, replacing old plumbing and much more. You’ll also need to replace major appliances when they reach the end of the line.
Insurance. This is another big expense, especially if you live in a region that is severely affected by storms, floods and other natural disasters. Plus, if a natural disaster does happen, you could see your insurance rise significantly. Having home insurance is essential, because you could lose everything in the instance of a fire or flood. Not only do you want to protect your assets, but you also want to protect your personal belongings and other sentimental items. Plus, if you live in a region that is affected by earthquakes, you may need a separate insurance policy.
Energy and utilities. These are the major expenses that fluctuate the most, especially if you have a lot of energy needs. Things like electricity and water can really cut deep into your wallet every month. In fact, many homeowners that go from renting a home to owning one don’t necessarily expect how much these utilities cost, because they are used to a landlord covering them. Of course you can save energy by implementing more cost effective methods, like a generator. However, there are a lot of things to consider when buying a standby generator, like how much energy you would actually be saving. When you think of utilities people often jump to the thought of gas and electric, but other items like cable and home security systems should be taken into account as well. Your monthly ADT payment can put a big dent in your wallet if you aren’t careful, they are there to upsell their services to you as much as possible.
Fees. If you live in a cul-de-sac community, there may be homeowner’s fees that go towards the beautification of the neighborhood. These fees can range in the hundreds to the thousands of dollars a month. You may also have membership fees, which is just one of the expenses of living in an exclusive community.
- Taxes. In the end, property taxes can be quite high depending on where you live and how much your home is worth. There are many ways to save on high property taxes, but in some cases it is an unavoidable expense that must be paid, or else you could lose your home. So, make sure that you work with your accountant to see about saving money on your property taxes – you could wind up getting lucky.