4 Expenses Homeowners Make
Owning a home is a landmark achievement that every renter strives for. However, this is an expensive project and the rising cost of homes has left prospective buyers with no option than to continue renting.
With the help of various mortgage and flexible payment options, some potential buyers have been able to purchase homes that had been hitherto beyond their affordability range.
The cost of owning a home goes beyond the purchase price of the home. There are recurrent expenses that a homeowner will have to pay after buying the home. These payments amount to a substantial amount over time so it is best to be prepared for them.
Before buying a home, it is advisable to consider these expenses below:
Utilities
Transitioning from renting to owning a home will increase the cost of utilities because you will be occupying more space. When you own your home, you’re in charge of covering it all; water, electricity, waste disposal and other utilities.
Property Taxes
These taxes depend on prevailing government policies and rates. They may range from environmental protection fees to tenement rates. These charges also vary depending on location, so it is necessary to find out which taxes are applicable in your area before buying.
Home Insurance
If you are planning on buying a home using mortgage finance options, you will definitely have to pay for home insurance. This will be factored into the monthly mortgage payments you will make to the bank.
Service Charge
When buying a house in an estate development, you will be required to pay certain fees which will include (but not limited to) infrastructure levy, service charge and other fees. These might run into millions of naira over time, so it is advisable to find out how much you will be required to pay before buying.
Routine Maintenance Repairs
Occasional repairs and maintenance will be carried out from time to time and depending on the nature of repairs, this could cost a substantial sum. It is best to carry out repairs as soon as possible so as to ensure things don’t break down completely as this would be more expensive to fix.
Home ownership is a whole different ball game from renting, so it’s best to get prepared for these expenses in order to avoid unpleasant surprises down the road.
