As a new homeowner, it’s exciting to get settled in your home. It’s also common for new homeowners to believe that the only costs to worry about when owning a home is attached to the mortgage. But there are more costs to consider beyond your mortgage. Here are some important expenses to take into account:
1. Home Repair Expenses
It’s important to budget for repairs in the home since the different components of your house may break down over time or when least expected. Some common home repair costs that can impact the price of owning a home include replacements for torn screen doors, roof repair, air conditioner repair and repairs for your septic system. These costs can add up over time, so it’s critical to include them in your budget.
Homeowners commonly hire home repair services to take care of these and other issues. Make sure you’re protecting your investment by hiring only reputable home repair service companies.
2. Expenses for Routine Maintenance
From pest-control to yard care, you’ll need to consider the cost of the upkeep of your home. For instance, maintenance expenses may include power washing services, HVAC inspection services, lawn mowing services and cleaning your gutters. These are recurring chores, so it’s important to consider the costs for routine maintenance.
3. Cost of Wear-and-Tear
Sometimes your home and its components experience wear-and-tear that is inevitable or isn’t repairable. You’ll want to budget for replacing items like a worn-down kitchen faucet, an old water heater or a weather-impacted fence. Consider budgeting one to five percent of your monthly take-home pay for these expenses. But if you want to keep the cost down for the upkeep of your home, then consider getting a home warranty. With a home warranty, you can get discounted prices on repairs for your home and replacement services you may need. You may also use a home warranty to cover costs for replacing major appliances, such as your washing machine or refrigerator.
4. Increased Utility Costs
If you’re moving from a small home or apartment into a larger home, you can expect increased costs when it comes to your utility bills. That’s because it costs more to heat or cool a sizable home or a home with more square footage and higher ceilings. Count on utilities costing at least $200 or more in larger homes, such as your electric or gas bill.
Owning a new home is a great accomplishment. But it’s important to remember that the cost of a new home extends beyond the cost of your mortgage. By budgeting for the extra costs beyond your mortgage and taking advantage of a home warranty, you can better prepare for all the expenses that come with owning a home.