Some Hidden Costs Of Home Ownership

If you’re like most people, buying your house is the single largest investment you’ve ever made. While it’s wonderful to have a place of your own, you also have to budget for many unexpected expenses. 

There are many hidden costs to home ownership, and these can be anything–professional services, home improvement, and home ownership costs. Let’s take a closer look at some expenses that you may not have considered when you first bought your home, and then we’ll talk about how to pay for them.     

1. Professional Services 

Unless you happen to be extraordinarily lucky, one professional service you’ll need is to hire a pest control service if you have an infestation of termites, rodents, wasps, or spiders. Usually, when you try to take care of this issue yourself, you are rarely successful because you don’t know how to treat or handle infestations. It shouldn’t be difficult to find one where you live. If, for instance, you live in Las Vegas, then you will find a service for pest control in Las Vegas Nevada. A professional service will offer you a specialized service, charge you a fair price, use green products that will mitigate hazards, and offer flexible scheduling options. 

By doing it yourself, you take all kinds of risks. You might get stung. You might scatter diseased rodents with Hantavirus to find new hiding places in your home. Or you might poison yourself because you don’t have any training in how to use harsh chemicals. 

Other professional services you will need sooner or later are repair and maintenance. It will be expensive to repair your roof, fix your furnace, and deal with plumbing problems.  You will also need to maintain your front and backyard, clean out the gutters, and get your carpets shampooed. If you keep up on repair and maintenance, you will enjoy your home more and it will be easier to sell it. If, conversely, you procrastinate on taking care of things, then the costs associated with the sale of your home will be steep. Neglecting your home because you can’t afford to keep up with the costs will only make existing problems even more expensive to repair—because if you don’t fix up your home before you sell it, you either may find it difficult to sell or you will have hurt its market value. 

2. Home improvements

With so many home improvement TV shows, enticing blogs and magazines showing you ways to radically transform your home, it’s difficult to be completely indifferent to the whole idea of making your home look and feel better. Unfortunately, while some home improvement is a good thing, it’s only too easy to get carried away with one home improvement project after another. If you are tempted to do a makeover, then only buy a few high-quality things to avoid wrecking your budget.  

3. Home Ownership Costs 

As a homeowner, you will have to pay property taxes, and it’s reasonable to expect them to increase over the years. It’s rare for them to decrease.  

If your home, whether it’s a condo or a single-family home is part of a community, then there will be homeowner’s association fees, and these can range from $200 to over $1,000. While $200 is about average, the more expensive fees occur if you live in a high-end community with a large number of amenities.  

And then, of course, there is your home insurance premium to consider. 

How to Manage Hidden Expenses 

It’s rare for all these expenses to come all at once; however, when they do come, you will be hard-hit if you have just been living from paycheck to paycheck. While you could get a loan, this is not really a solution because you will now be saddled with a high-interest loan that you have to pay back.  

The best solution is to save a little bit of money from each paycheck you get. Have a certain percentage of your income automatically go into a savings account.  

Buying a home and taking care of it can be a wonderful experience, but you have to be aware that your costs aren’t limited to your initial costs. There will be ongoing costs and you should create an emergency cash fund to be able to handle your unexpected expenses.

About the Author