For most of us, the asset value, of one’s house, represents our single – biggest, financial asset, so, doesn’t it make sense, to be, as prepared, as possible, for the most common, expenses, associated, with home ownership? Although, this activity, is often, considered, an essential part, of the so – called, American Dream, unless, a homeowner, is, as prepared, as possible, it might become a nightmare, instead! The more one knows, and recognizes, what to prepare for, the easier, and less stressful, this happy act, becomes! With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 6 of the basic, home ownership – related expenses.
1. Down – payment, and Closing Costs: Although, most people, know, and understand, what, their down – payment, will be, because, their lender, informs them, many fail to consider, thoroughly, many of the other, associated, Closing Costs. These include: Title Insurance and Title Search; pre – paid real estate taxes, and utility charges; reimbursement for previous owners, prepayments of several items; legal costs; filing fees; etc.
2. Monthly recurring expenses: Many expenses, associated with owning a home, are recurring! Everything, associated, with one’s mortgage, including, paying principal, interest, and escrow charges, must be considered. It is also, important, to understand, some of the escrow items, such as real estate taxes, often, rise, annually.
3. Immediate cosmetic upgrades: Even, when one purchases, a house, considered to be, in, move – in, condition, the new owner, generally, has somewhat different tastes, and needs/ priorities, and, thus, will usually, want to make certain, immediate, cosmetic changes/ upgrades, such as painting, floor – related changes, etc.
4. Routine repairs: Be prepared for routine repairs, such as repairing/ fixing, minor appliances, doors and locks, and, all those things, which, everyone, who ever owned a house, of their own, eventually, realizes, he must expect, anticipate, and be prepared, for!
5. Major repairs: One must create a reserve fund, to be prepared, for major repairs, which are needed, from time, to time. These include: the heating, and cooling/ ventilation/ HVAC systems; major appliances (such as washing machine, clothes dryer, refrigerator, oven/ stove, dishwasher, etc); structural work (such as roof, gutters, windows, walk – ways, driveway, etc), etc.
6. Renovations: No matter, how, thrilled, one is, with the home, he purchases, priorities, needs, etc, change, over – time, and, renovations may be indicated, and needed. Sometimes, it might be kitchen – related, or an upgrade to a bathroom, while, other – times, one may decide to expand (add – onto), the existing home, because, a homeowner, feels he needs more, and/ or, different space, etc.
The more prepared, one is, the happier, the home – ownership, experience, will be! Proceed, wisely, and in a prepared manner!