The real cost of homeownership

By
Real Estate Agent with LaBelle Real Estate Group

Homeowners embarking on their first mortgage have already cleared many financial hurdles.

Part of this long-term commitment means paying for closing costs, home inspections and title work. 

Most first-timers are also prepared for property taxes and insurance, but these are typically set aside in escrow and added to the monthly mortgage payment.

But the cost of homeownership doesn't stop there. Unlike renters, homeowners have a vested interest in property maintenance.

It's important to plan for annual check-ups, as well as unexpected repairs, like a broken appliance or leaky roof.

On some tasks - yard care, driveway care, roof care - money can be saved by doing it yourself. 

However, major systems, including plumbing, electric and the heating and cooling system (HVAC), are probably best left to a professional. 

Regular maintenance increases efficiency and extends longevity – saving money in the long run. It’s also a requirement for any home warranty. 

These expenses need not be scary if included in a budget. Set aside 1 to 3 percent of the home’s purchase price each year in a separate savings account. For a $300,000 home, that’s $3,000 to $9,000. It’s usually easier to build this reserve in weekly or monthly installments. 

Remember all the time spent in rentals, writing ever-larger checks to a landlord. One day it will all be worthwhile. 

Not only is a home a great place to grow a family and build a lifetime of memories, it’s still the best way to build wealth and financial stability without being a captain of industry.

 

Any Questions: Call/Text Tim at: 612 701 5335.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
112,120
Eva B. Liland with Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service

Yes, creating a budget for those unexpected and expected situations is a great way to do it. Otherwise, you will always feel the burden of not planning and what might happen if you don't.

Excellent points!

Jan 10, 2017 05:06 PM #1
Rainmaker
2,306,652
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Tim L. RameyThanks for the very good report on the real cost of homeownership

Jan 10, 2017 05:29 PM #2
Ambassador
3,306,698
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Important to consider these ongoing costs of ownership, and those who neglect these are easy to see as their homes deteriorate.

 

Jan 22, 2017 10:24 PM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
353,544

Tim L. Ramey

Ask me a question
*
*
*
*
Spam prevention