Owning their own home is the dream for many people. No more rental payments, freedom to do as they wish within a property, and actually having some equity, is something that many out there are striving for every day. Owning your own home does have its downsides, however, in that it can be a huge responsibility and can be extremely expensive. Read our guide to find out how costly owning a property can be.
Many rental properties include the cost of utilities in the monthly rental payments. This isn’t the case when you buy your own home, you need to pay for these yourself and with costs rising all the time it can work out expensive. There is information out there in regard to the average costs for utilities to give you an idea of how much you will be forking out.
2. Mortgage Payments
There’s no getting away from these, failure to pay them will see your home taken away from you. Mortgage payments are always going to be the most expensive part of buying a property, but actually, they can often work out cheaper than renting. Use a comparison tool to work out how much you are likely to have to pay each month.
3. Private Mortgage Insurance
Depending on the mortgage that you opt for, buying Private Mortgage Insurance might be compulsory. This is an insurance that protects the lender if you stop making payments towards your mortgage and is usually added to your monthly mortgage payment.
4. Repairs and Maintenance
Owning your own home means that you are responsible for maintaining it, you can’t turn to a landlord anymore when something goes wrong. It is a sad fact of life that we can’t foresee when maintenance issues might crop up and so can’t plan adequately for them but maintaining your home can be a costly affair. That being said, investing in your home does have benefits and is not always money wasted. Read our blog post about the future of real estate to put your mind at ease.
5. Property Tax Payments
Everyone who owns a property has to pay an annual property tax. The tax is imposed by the government and is used towards providing public services. It is normally calculated based on the value of any land that you own and your properties. There is plenty of information out there about the calculation and payment of property tax if you would like to know more.
6. Home Improvements
It is always a good idea to keep up with improvements in your home. When it comes to selling it, buyers love nothing more than purchasing a house that is ready for them to move into straight away. Keep up with what is new in terms of decor and appliances to ensure that your investment in your home is maintained.
7. Homeowners’ Insurance Premiums
It would be crazy to not purchase home insurance along with the purchase of your own property, and often, it can be a requirement of your mortgage. It can be costly and add a fair chunk of money to those monthly bills but it does offer you protection if something disastrous happens to your property.