subject: How New Homeowners Can Prepare For All Of The Costs Of Owning [print this page] If you are considering homeownership, it is important to consider your costs in addition to mortgage payments. A lot of homeowners buy without creating a realistic budget. If you are browsing the market, now may be the time to make sure you can afford everything that will be involved in owning instead of renting. If you plan to build a house or build a home, you should carefully consider your finances and determine if you have enough for all of the unexpected costs. Be sure you put aside plenty in your budget for these necessary and emergency occurrences.
First, before you you take out a mortgage, consider property taxes. Taxes vary dpending on where you live, so it is important realize how the taxes are going to affect your monthly payments. Also realize property taxes can be raised. Many states and local governments have to adhere to laws concerning how quickly they can rise and how soon after you buy they can be raised. There are areas that have no respect for new homeowners and just raise property taxes as quickly and by as much as they legally can. Take a look back at the taxes of an area to get an idea for how much the local governments value homeownership and how quickly the taxes rise.
Next, take into account all you are going to have to do to make your new space comfortable. You may have to purchase all new furniture or at least a lot of new pieces if you have moved from a much smaller apartment. While you may not need to buy every piece all at once and you will have the option of buying gently used pieces, you may still be looking at spending a huge chunk of money.
Also take any needed appliances into account. If the previous owners allow their appliances to convey you can save a bundle, so do your best to work that into your sales deal. If you are buying brand new, you will need to pay for the appliances, but they can be built into the housing costs and possibly included in the mortgage. Just be sure you are clear on what you will need to pay for before making your choice.
Finally, put aside money for emergencies. Even if the place you choose seems to be in perfect condition, accidents and emergencies can happen. It is best to be prepared with an emergency fund. If there are serious emergencies like a fire, you can rely on the help of insurance. However, there are often smaller emergencies like minor floods or small disasters that are not serious enough for an insurance claim. If you have a rainy day fund it will make these emergencies more bearable and ownership much more pleasant.
