The Hidden Costs of Owning A Home

While the actual costs may appear pretty cut-and-dry there are several hidden costs of homeownership which many people don’t even consider when they are looking into buying a home.

Taxes: While taxes are just an annual cost, getting slapped with a several thousand dollar tax bill just for owning your home can be a real shock the first year the tax bill comes due. You might be better suited to figure your approximate taxes and budget for the cost ahead of time so you are prepared when it is time to pay.

Insurance: You have just purchased probably the biggest thing you ever will in your life; you have got to insure it. Insurance is going to be required to some extent while you are paying down your mortgage; it’s also something you should continue to invest in once you’ve paid off your mortgage.

Maintenance: You never know what this could include, but the maintenance is going to be a big strain on your annual budget and could cause debt issues. Whether that’s the trash pick-up, lawn care, fixing a gutter, repairing your septic, upgrading your air conditioning or anything else; you will know these maintenance costs when they arise.

Cosmetics: Another thing that every homeowner will want to do is they will want to improve the beauty of their home. You will just have to tear down that awful dining room wallpaper. And while we’re on the subject the bathrooms could use re-tiling. Of course you will have to improve the front garden and of course the whole driveway has got to be repaved. Once you begin to realize all the things about your dream home which were not as dreamy as you thought when you bought the home, you will begin to see the cosmetic costs begin to rise.

Time: Another one of the hidden costs of homeownership; maybe the biggest, most straining, and least expected of all is time. You spend so much time and effort making your career successful; when you come home you just want to relax and not worry about anything. But when you are a home owner you have to worry about everything.

Of course if you bought your home a few years ago and you’re having trouble keeping up with all these unexpected costs, you may wish to look into mortgage modification. Mortgage modification may not be right for you, but if you can stay in your home by adjusting payments and working out a deal with your lender, it might help you budget better for future costly expenses.  

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