Tuesday, October 11, 2016
The Underlying Costs Of Home Ownership
Like countless others, you might be throwing together plans to finally move into the house of your dreams. However, before you throw yourself blindly into the process of buying, you need to be aware of the various hidden costs which are tied to owning your perfect home. When it comes to big decisions like these, it can sometimes be easy to let your emotions affect your perception of the hard, financial reality. To ensure this doesn’t become too much of an issue, you need to be aware of the following.
First of all, the home inspection. This is a very important phase of the buying process, and you may be tempted to go with the cheapest option possible. While I understand the allure of this, you need to avoid it at all costs. When it comes to home inspections, you really get what you pay for. If you go with a cheaper option, you could end up with an inspection that overlooks some massive, glaring issues in your home. You’ll be much better off in the long run if you find a high-quality service to take a look at the place. Still, even when you’re hiring the best home inspectors around, it pays to go a little further and do your own research on the property. If the home’s on the site of a disused mine, I’m sure you’d want to know!
Insurance is another big cost which you’re going to have to think about before you seriously consider owning a home. One thing you’re going to have to prepare for is all your premiums going up. Still, you can get a considerable discount from a lot of insurers by bundling your car and home policies together. Buildings and contents insurance will also be a significant cost of owning. While insurance is a hefty and necessary cost, you can make the burden a little easier on yourself by choosing a broker that specialises in the kind of property you’re going for. For example, if you want to take out a mortgage on a high-net-worth building, you’d be better off going to a broker like Enness Private Clients.
Closing costs are another big expense, which a surprising amount of homeowners fail to plan for. Ignoring this hidden cost can be a very expensive mistake, so make sure you don’t do it! Of all the different expenses tied to owning a home, the closing costs can be one of the hardest to pin down. However, any good lender will be able to give you a ballpark estimate of what the closing costs will be, allowing you to plan ahead and set aside a decent buffer. Depending on the circumstances, they may wrap your closing costs up in the mortgage. However, you’ll still have to make up for anything that isn’t covered. Knowing the closing costs well in advance can be a huge advantage, so be sure to ask questions!
As you go ahead with your home buying process, make sure you’re planning ahead for these hidden costs!