When talking about owning a home, the biggest factor that comes to mind is the mortgage. Although this actually comprise a large part of the expenses, it isn't everything. There are many other costs aligned with home ownership. Here is an outline of the possible expenses that comes with owning a home:
1. Property Tax
Apart from your monthly mortgage, one of the other major home ownership expenses is the property tax. It will be determined by many factors, and while this can be a bit pricy, you can determine how much it will affect you financially by dividing the overall cost by 12 per year.
2. Utilities
Utility expenses is strongly affected by the size of your home. If you own a small home, power and heat may not cost you too much. But if you have a bigger property, these basic necessities may cost you a lot. From the heaters, air cons, stove, and the likes, you should be ready to divide your income properly so you don't fall short on your budget.
3. Insurance
Insurance may seem optional to many, and this is something you can skip if you are living in an apartment. But if you have invested in a home, protecting your assets should not be forgotten. With an insurance, you can choose a package that will best serve your home in case something unfortunate happens.
4. Maintenance
One positive effect of renting is taking all maintenance issues to the landlord. However, if you already owned your home, you are your own landlord. This means taking responsibility over the broken stuff like plumbing and faulty cabinets. Repairs would become less of a headache if you have set aside repair emergency cash.
Owning a home comes with lots of expenses, but if you are financially prepared this won't be a problem. Besides, home ownership is still better than renting in so many ways. Not only does it increase your net worth, this also means you are free from worrying about finding another home to rent when your current rentals go up. Not only that, the assurance of having a home to get old in, and a home to shelter your kids and grandkids, is also very much relieving, compared to relying on rental houses.
