What Are the Typical Expenses for Buying a House in 2021
Are you ready to embark on your journey of home-buying? Owning a house is everyone’s once-in-a-lifetime dream.
While we recommend checking the best homes at repcalgaryhomes, we also want to address the elephant in the room—save as much money as possible while buying a house.
The money that home buyers bring at the time of closing makes the most of the total expenses involved in buying the house.
If this is the first time you are buying a house, we recommend looking at the below-given financial aspects that many first-time buyers overlook but are an essential part of the home-buying process.
Annual Property Taxes
As a property owner, you will be obliged to pay annual property taxes. While the amount of property taxes varies from one state to another, you expect it to fall somewhere between 0.55% and 2.5% of the entire value of your property.
Depending on the region where you plan to move to, some municipalities might also charge some extra property taxes. You can get a better idea about the figures by visiting the website of the tax foundation.
After you become a homeowner, you will have to pay utility bills, such as power, water, and other hefty expenses that pile up every month.
To avoid getting unpleasant surprises, make it a point to ask the retailer/ seller to share their utility bills of the previous year.
By looking at the utility bills of the previous homeowners, you can get a clearer idea of what to expect from your mandatory monthly expenses.
Repairs & House Maintenance Charges
Once you are an official house owner, you are entirely responsible for everything related to its repair and maintenance.
This might hit differently amongst first-time house buyers, especially when they lived in rental apartments, where everything related to repairs and home maintenance was taken care of by the landlord.
Once you own a house, prepare yourself for things to get expensive, even when it means the simple task of replacing the bathroom faucets.
That said, as a new homeowner, you need to set aside at least $5000 annually dedicated to potential issues related to home repairs and maintenance.
The amount that new homeowners have to pay for their home insurance depends on their state and community. According to a rough estimation, the average cost of home insurance per square foot falls somewhere at $96.
If you know the size of your home, you can make effective use of a home insurance calculator to see how much you are expected to pay.
While your annual property taxes and home insurance can be paid in easy (monthly/ bi-annual) installments, these can be added to your mortgage payments for your convenience.
Typically, your mortgage company will take care of the home insurance and property taxes whenever the due dates draw nearer.
The bottom line is to have a transparent idea about the additional costs that follow homeownership, so you don’t go through stress and anxiety later after closing the deal.