Owning a house will cost you more money than you ever imagined. It doesn’t just come down to the cost of buying your furniture, as it involves downsides and substantial risks.

“Buying your own home is more than just choosing your interior; it takes risks and carries a list of lifetime expenses,” said financial expert and loan services provider Megan Carter of Ask Funding.

Like buying a car, getting your own home can also be financially challenging. Here are the actual costs of real estate that every homeowner needs to know.

1. Capital Improvements, Repairs, and Maintenance

Everything in your house deteriorates and will need repair and replacement from time to time. By the time you successfully replace your furnace, you will be repairing your roof the next time, and the list will go on and on.

You can set aside 10% to 15% of your monthly budget for repair and maintenance to be safe. You can put it in an account that you can tap in case you face a hefty repair bill.

2. Utilities

Out of all the expenses, utilities have got to be the one you are most familiar with. However, this is very tricky and can make you go from “I got this” to “I am screwed!”

Utility bills will depend on the size of your home, as the more extensive your place will be, the higher the bills you will have to pay. Also, note that your accounts can double or triple depending on the season.

3. Property Taxes

It will be one of the most apparent expenses if you purchase your own home. Every homeowner will have to settle property taxes to the state they are in.

Bear in mind that the amount will not remain constant as the state will find any excuse to raise the property taxes, like your purchase transaction, for example. Expect a rise in the purchase price and local tax rate.

4. Insurance

You may have excused yourself from renting insurance, but you cannot get away from homeowners insurance as a real estate owner.

5. Condo or HOA Fees

Even if you decide to get yourself an apartment or a condominium, you will still pay for the common grounds. You will be responsible for monthly condominium fees that will take up a significant part of your budget.

You will need to incur similar fees to pay into a homeowners association (HOA) every month for a family home. They usually cost lower than condo fees but note that lawn care and landscaping will be additional costs.

Consider Getting Real Estate Advice Today

Buying your own home is an investment, but it is also a lifetime commitment. It is best to prepare yourself for financial responsibilities before signing the necessary documents for ownership.

Drake Group is a group of professionals that can help you with real estate and conveyancing matters. They aim to provide you with the advice, actions and support you need regarding real estate.

You can contact us today and start your journey to having your own home.