Money Talk – Costs Associated with Homeownership

Congratulations, you’ve bought you have just received the keys to your home. You’ve made a down payment and paid all the other one-time fees associated with getting your home. Did you know that there are certain homeownership costs that will continue even after you have received your keys?

Mortgage Payments – This will be a common expense in homeownership where the amount will vary on the type of interest rate you have chosen to go with.

Property Taxes – Every year, homeowners will have to pay property taxes. This amount will vary on location and on the value of the home. For example, if your home is valued at $300,000 and property taxes are 2%, one’s property tax bill would be $6,000 for the year. This can be paid monthly, twice in a year or as a lump sum.

Utilities – Unless one’s home is off-the-grid, utilities will also be a common home expense that will remain. Utilities includes water, heating and electricity. For some, utilities could also include cable, internet and phone.

Repairs and improvements – Once we become homeowner, unless we purchase a home that is brand new, there will be repairs and improvements that we may not realize until we need to spend hundreds, if not potentially thousands in repairs and improvements.

Insurance – Though home insurance is not mandatory, it is beneficial for anyone who is seeking to have peace of mind.

Condo or common fees – Depending on the layout of the home, there may be condo or communal fees. This will often go to paying for landscaping, snow removal and any repairing of communal areas.

For some, owning a home is considered costlier than renting; however, there is great pride and accomplishment that comes with homeownership. For some, they think that the expenses are greater than renting; however, there are some things that make homeownership not just an investment but also slightly cheaper than renting. At the end of the day, it comes down to preference and budget.

Categorised in: Buyers, Kamloops, Real Estate

This post was written by kamloopshomesearchcom