The actual cost of home ownership might be more than you think!
So the bank says you can get a loan for $500,000? Cool.
But, have you thought about the other expenses that come alongside the mortgage?
We call this the actual cost of home ownership!
Some additional costs to consider when determining your budget include:
- Utility costs – yes, it costs more to heat a 4,000 square foot home than a 1,000 square foot home
- Property insurance – same thing as above
- Taxes – this varies not only on size but also location!
- Maintenance costs – changing the air filter, preventative pest treatment, staining the deck, etc.
- Repair costs – replacing a 2 car garage door costs the same whether you live in a $100k home or a $500k home. Unfortunately, the garage door companies don’t care that you only paid X for your home. If the garage door needs replaced, it’s a flat fee (of course customizing your door changes the price, but it’s not a relative cost!)
Home ownership is extremely rewarding, but it comes at a price! Make sure you’re doing your homework, and being realistic with yourself before signing on the dotted line so you can settle in and enjoy your new home as you envision!