Saturday, October 24

Those Miscellaneous Home owner Expenses

The other day, I ran into my colleague at work who was dejected that he did not know pest control charges on his new home was 500$. He had closed on his new home just the week before and I just did not have the heart to point out the other expenses heading his way.

We have also run into a lot of folks who think that just because they can afford to stay in an apartment where monthly Rent = 1500$, it means that they can afford a Mortgage of 1500$ per month. When we did the research for our buy vs rent scenario, we came up with so many other costs associated with home ownership that it blew our minds. Below are some of the annual costs that we came across:

Charge TypeAnnual Cost ($)
Mortgage Insurance1200
Property Tax4000
Home Insurance1000
Utilities3000
HOA660
Pest control500
Yard Care350
Waste Management200
Used Home Warranty600
HVAC Service225
Appliance Insurance500
Total Yearly Charge12235

Notes:

  1. Even if some of the above does not apply to you –chances are you would end up spending around 1000$ per month additionally by buying a house.
  2. The above mentioned costs are recurring charges. Below are some one-time costs that can push your budget over the top:
    • One time appraisal cost.
    • One time move-in cost.
    • One time closing costs.
    • One time furnishing cost.(Everyone wants a house that looks like it is from HGTV magazine and that is not cheap)

My intention is not to deter you from buying a house. The intention is to ensure that you make an informed purchase. Cheers!

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