It's Not Just a Mortgage: Understanding the Financial Implications of Buying a New Home

When it comes to home ownership, the biggest buzzword of them all is mortgage and it’s often all people think about when it comes to price. While the ‘m’ word will be a large part of the expense that goes into owning a house, it’s important to be aware of all of the other costs that are aligned with having a home. From taxes to utilities, here are some of the other items that you won’t be able to do without once you’ve made the big purchase.

The Perils of Property Tax

Outside of the mortgage, one of the other more marked expenses you’ll be paying when you delve into home ownership is property tax, which will be determined by the place you live in. While this amount can be quite pricy or more modest, you’ll be able to determine how it will impact your bottom line by dividing it into twelve monthly costs per year.

All the Utilities that Matter

In a small apartment where many utilities are often included, power and heat might seem like a minor cost, but a bigger space means a bigger cost when it comes to the basic necessities of home life. From heating your home during a cold winter to using the stove, this can be a significant cost if you have a sizeable living space.

The Necessity of Insurance

Insurance may seem like something you can forgo if you’re in an apartment building, but when you’ve already invested considerably in the purchase of a house, it’s very important to protect your assets. With insurance, you can often customize a package that will best serve the interests of your home in case something goes wrong.

Don’t Forget About Maintenance!

One of the great things about having a landlord is that you don’t have to worry about small fix-ups like your cabinet falling off or your kitchen sink springing a leak. Unfortunately, when purchasing a home you become your own landlord and this means that the responsibility for all the issues that arise is in your hands, so you‘ll have to pay out of your own pocket.

There are a lot of costs that go along with purchasing a home, but by being prepared and knowing what they are you can make a more informed decision. If you’d like to know more about other costs associated with home ownership, you should consider contacting your local real estate expert for more information.