When you’re buying a property, the costs you’ll be most interested in, and the ones you’ll know the most about, will be your down payment and your mortgage payments. However, there are many other costs that you’ll need to consider as well. If you ignore them, you might find yourself in a difficult situation, making owning a property less of an advantage and much more problematic. Read on to find out what some of those additional hidden costs might be.
Delays
Everything is set up and ready to go, but a delay comes along – it could be anything from an unexpected delay in funding to problems with the home inspection, for example. If this pushes the purchase of the property back, it could mean you have to incur additional costs, especially if you are selling your current home at the same time.
To eliminate this issue as much as possible, it’s worth considering a bridging loan from Sachem Lending. This will mean that the purchase can go ahead anyway, and you’ll simply repay the loan once everything is settled.
Property Taxes
If you’ve owned a property before, you’ll know there are certain taxes you must pay. However, this can come as a surprise to first-time homeowners, and it can even be a shock to those who have owned before if the new property you buy has far more expensive taxes than the old one.
The tax you have to pay will depend on the location of your property, its size, and even what it might be used for. So that this doesn’t come as a surprise and you know what you’ll be paying for, it’s best to find the cost out in advance and add it to your budget. You’ll then know if the property is affordable, because if you’re only considering the mortgage repayments, you don’t have the full picture.
Maintenance
When you own a property, you need to spend money on maintaining it. This is not a cost that is easily seen from the outset, especially if the previous owners have taken good care of the property. However, over time, as elements wear out and need to be fixed, modernized, or entirely replaced, you will need to invest money into them.
How much you have to spend will entirely depend on what work needs to be done and how much (if anything) you can do yourself. Remember, though, that although DIY might be tempting, it can end up costing you more due to mistakes that have to be rectified by a professional, for example. In some cases, such as when it comes to your electrics or roofing work, it’s dangerous too.
Utilities
Again, if you’ve lived pretty much anywhere before, whether you owned or rented, you will have had to pay for heating, electricity, gas, water, and so on. However, since each home will cost a different amount, and some will be more expensive than others, it’s worth investigating this cost before you commit to buy.
Along with the property taxes we mentioned earlier, add the costs of your utilities into your monthly budget with your mortgage repayments. How much is it all going to cost and can you comfortably afford it? Then, you’ll know whether you’re making the right choice.
