Costs Of Owning A Home

This is a picture of a miniature house behind stacks of gold coins

There are many things to consider when buying a home. Along with the initial expenses such as purchase price, closing costs, down payment, etc., there are also costs that come after the home is purchased. Here are a few things to be prepared for when owning a home:

Homeowners Insurance

The annual premium can vary between insurance agents, so make sure to shop around! Also, bundling certain plans can help bring costs down. Ultimately, thehomeowners insurance premium changes based on the size and age of the home.

Property Taxes

There’s no getting around taxes. They must be paid and depend on the value of the home. You should qualify for a homestead exemption that lowers your taxes by taxing only a portion of what your home is worth.

Utilities

These include bills such as electricity, gas, water, cable, internet, which you probably have gotten used to paying as a renter.

Home Repair/Maintenance

If you were renting before, your landlord was responsible for repairs and general maintenance. Now that you own your own home, the cost falls on you.

Appliances

Most homes come with the major ones, but be prepared to dish out money to cover a washer and dryer, and maybe a few other appliances that don’t come with the home or that need to be replaced. This infographic by the Texas Association of Realtors® gives you an idea of what conveys and what stays with a home.

Furniture

Once you purchase the home, you’ll most likely need to fill it with furniture. Even if you might have some from the apartment or house you were renting, you’ll probably need a few more items to fill that larger space.

Yard Care

Although you can do most of the work yourself, you’ll probably be too busy working to pay that mortgage, so you might opt to pay for lawn care service. This is an optional service. The price ranges depending on how big your outdoor space is and how much you want done (for example: simple mow and trim vs. elaborate landscape design).

Pest Control

Of course you should get a termite inspection before buying a home. But,
especially in Texas, be prepared to include pest control in your monthly home expenses. In the end,
prevention is cheaper and less of a hassle than fixing a pest problem after.

Security System

This is also optional. Even if people buy a home in a generally safe neighborhood, they might prefer the added security of knowing they have a security system in place. Of course this comes with an added monthly cost. Prices vary depending on types of service you select and which company you choose to go with. As always, shop around!

This list is not meant to deter you from being a homeowner by any means. Its purpose is just to make you aware that there are costs that come with owning a home as opposed to renting. The decision to buy or rent depends on your personal lifestyle and situation. Read the Renting vs. Buying blog to view the pros and cons of each.

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