Buying a home is exciting, especially when it’s your first home. The thrill of turning the key for the first time, sitting on the couch looking out the window, or mowing your yard makes homeownership feel real. However, along with this excitement comes bills, maintenance, and property taxes. These are expenses a first home buyer may not anticipate before purchasing their home. This blog post is going to take you through the top three “hidden” costs of buying a home.
Before buying a home in Central Texas, you don’t have to pay property taxes because you don’t own land. Along with purchasing a home, you also purchase the land it comes on. This comes with property taxes that can range from 1.8%-2.9% of the assessed value. This will add substantially to your monthly cost. Keep these costs in mind when searching for your dream home. Even without a mortgage these costs last forever.
Before you purchase a home, maintenance isn’t something you have to worry about. The lawn for example. Landscapers are hired by apartment complexes and they take care of keeping the area looking nice. Now that you have your own lawn, you have to think about how to keep it looking well maintained, which comes with a slew of costs you may have not anticipated before buying your home. The same is true for plumbing, electrical, painting, and other annual chores required to keep your house in good condition. You should plan on $200-$300 per month when it comes to these expenses.
Homeowner’s insurance is much more expensive than renter’s insurance because there are more liabilities that come with owning a home. However, it is required when you have a mortgage and it is also a good thing because it protects you if your house gets struck by lightning or a tree falls into the living room. But this $100-$200 monthly cost is something you have to be ready for.
There are many other hidden costs in Central Texas of buying a home. At the bottom of this article are links to websites that contain more information on this topic. The most important thing to remember when buying a house is to be prepared to pay for more than just a home.
The Bottom Line: Don’t let hidden costs deter you from buying your dream home. Just be prepared for them.