Tuesday, September 6, 2016

The 7 Hidden Costs of Owning a Home

The 7 Hidden Costs of Owning a Home
By Emilio DiSpirito

Home Ownership, aka, the American Dream! Nothing is more fulfilling than buying your first home! Tax deductions, family & friends, summer cookouts and having a major asset in your financial portfolio.

Aside from ALL of the thrills.. there are some chills and some hidden bills!!

Thus bringing us to our topic of The 17 Hidden Costs of Owning a Home!

1.) Curb Appeal - The outside of your home says a lot about you! Do you have overgrown grass, holes in your window screens, a mattress in your front lawn?! Or do you have a carefully edged lawn with mulch beds complemented by seasonal flowers and an American Flag hanging near the front door? So where do the hidden costs come from?

  • Yard tools
    • Lawn Mower $250+
    • Weed Wacker $150
    • Rakes, Bush Trimmers, Hedge Clippers
    • Leaf Bags, gloves, misc tools
    • Yard Shed $1500 to $3500
  • Ornamental Items
    • Mulch 
    • Flowers
    • Lawn 
    • Lawn Gnomes, etc. 
2.) Water, Sewer, Fire Tax, Home Owners Association Fees, Utility Bills - Your new home may be subject to fees other homes may not have. Such as Fire tax or Home Owner Association Fees. While these fees look to be a nominal monthly amount separately, they do add up and you need to take account for your monthly budget and long-term financial goals. 

3.) Time & Energy - Most American's work a full time if not also a part-time job on top of that to afford their lifestyles. The time it takes to keep a home maintained can be exausghsting. Don't overextend yourself on the size of home and yard if you can't sometimes hire someone to maintain it for you to allow for a break once in a while. Also, budget your time accordingly bi-weekly to tackle outdoor and indoor projects so that the maintenance issues and costs don't escalate. 

4.) Pest Control - When renting, you can easily call the property management company or the landlord to handle bugs, mice, etc. without even thinking about the costly bill. When owning, you flip every bill. Yearly preventive maintenance programs can cost you between $600 and $1200, however can save you thousands in the need of assistance. Call local companies, get quotes and make sure to budget for this. 

5.) Home Saftey - Smoke & Carbon Detectors can be up to $55 a pop! While a one time cost, you can have a hefty monthly cost on a security system, depending on how many bells and whistles. Your home, being one of your largest assets, where your family lays down at night to sleep and where you store your valuables. It should be well protected and you should budget for this cost. 

6.) The "Oh By The Way" - When you hire a contractor to replace a window or change a lock and they let you know that you have severe wood rot that needs to be handled.. That is one example of "oh by the way!".

7.) Future Location - Is your property somewhere that may be affected by construction projects? Residential or commercial developments on a large scale that can change your view or the overall aesthetics of what was once attractive to your property and area? If so, strongly consider the impact this could have on your sale price 5 to 30 years down the road. No one has a crystal ball, so don't blame yourself if it happens years later. It could cost you tens of thousands in a negative or positive cash flow. 

For a fast and FREE Home Analaysis visit www.HomePrice411.com or call Emilio DiSpirito 401-359-2338

1 comment:

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