The many costs of owning a home
Having their own home is one of the financial goals of many. Being able to buy a house regardless of your age is truly a milestone.
However, there are several costs and fees that you need to settle before you can have your dream house. So, it is essential that you are financially capable since it is a huge purchase.
Are you planning to buy your home soon? To help you out, we have provided the different costs you have to deal with being a home owner.
Down payment
Just like when buying your car, you need to save a down payment when planning to buying your car. Ideally, you need to save at least 20% of the purchase price of your home. However, you can add more amount if you want to. Remember that the higher the down payment, the lower your mortgage will be.
Housing loan
One of the major costs of owning a home is the mortgage. Many people opt to loan to purchase their dream home. Your monthly payment includes the principal amount and interest rate. This will take up a huge part in your budget, especially if you select a longer payment term. So, it is essential to carefully pick the housing loan product that matches your need.
Utilities
One of the common expenses when having your own home is the utilities. This includes the electricity, water, and internet, among others. Your utilities must not exceed half of your monthly income.
Home repair and maintenance
Having your own home requires consistent maintenance to maintain the beauty of your home. Maintenance costs include the pest control treatment, fertilize the garden, and change of air filters, among others.
Apart from maintenance, home repairs are necessary if something in your home gets broken. For example, you need to change your door locks when it gets older, replace kitchen or faucet if it leaks.
To avoid shelling out huge amount of money all at once, include home repairs to your monthly budget, so that you have an allotted money for it in case you need to repair something in your home.
Property insurance
Many homeowners overlooked the importance of a property insurance. A property insurance is a type of insurance policy that provides coverage for your home in case of damage. The coverage can be either for fire or lightning damage.
When looking for apolicy, ensure that you review all the inclusions and exclusions of the insurance coverage. Also, make time to compare and shop around to get the best deal.
You can check free quotes of property insurance here: https://www.ecomparemo.com.
Key takeaway
Mentioned above are only few of many possible costs of owning a home. Before considering to purchase your home, determine if your current income is enough to cover all the costs associated in owning a home, since doing it is a huge commitment.
Many financial experts recommend that the housing costs should range between 25% to 30% of your income. So, make time to review all these costs before becoming a homeowner.
