If you are considering purchasing a home, it is important to be aware of common expenses you may face. Being caught unaware by common expenses of home ownership can place you in a difficult financial situation. Our team at Woodmere Homes wants to ensure that you are satisfied with your purchase. In order to do so, it is essential to understand the common expenses of home ownership.
Moving Costs
There are many moving expenses that are often overlooked when you first purchase a home. However, keeping this in mind can help you to budget effectively. On average, you can expect to pay between $500-$2,000 for your moving expenses. At a minimum, you will be required to purchase moving supplies, such as boxes and duct tape. Other expenses associated with moving include truck rentals and the services of professional movers. It is also important to keep in mind that you may need to take time off work during your move, which can create additional expenses.
Utilities
Monthly utility expenses can catch you off guard if you don’t keep them in mind when you are budgeting. It is important to keep all of these expenses in mind when you create your budget. In general, you will be responsible for paying for all of the various utilities that are used in your building, such as gas and electricity.
Maintenance
Maintenance helps to keep your building in good condition. It is important to keep your maintenance expenses in mind to help maintain the value of your property. It can also be beneficial to ensure that you set money aside to make potential repairs when necessary. This can help to ensure that repairs are made quickly, which will minimize the scope of the damage.
Budgeting for Home Ownership
Budgeting for home ownership is an important step before you purchase a home, so that you know what you can afford. Most financial experts agree that your monthly housing expenses shouldn’t be more than around 28% of your gross monthly income.
Mortgage Payment
Your mortgage payment is often the largest monthly expense you will face with your home ownership. This payment includes paying both the interest and principal of the mortgage. The higher your down payment, the lower the principal of your mortgage will be. This will also reduce the total amount that you spend on interest over the duration of your mortgage. It is also important to remember that you will need to pay for property taxes, property insurance, and any relevant homeowner’s association dues. Many mortgage lenders will require you to have private mortgage insurance, which is an additional expense to keep in mind.
When you are able to plan for these common expenses of home ownership, you will be better positioned to budget effectively. Finding your perfect home within your budget doesn’t have to be out of your reach. At Woodmere Homes, we provide custom homes to meet all of your needs. To learn more about our homes and communities, contact us at Woodmere Homes today!
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