So, you have decided to build a new home but don’t know what it will cost? Well, no worries! We are here to help you. Having a new home is always an exciting thing. And when you have a clear idea about the costs, it will be easier for you to transform your house into a comfy zone forever.
Owning a home has many seen and unseen costs that many people do not know about. Here we have discussed a few hidden costs that you must need to know before making your decision.
What Are The Hidden Costs of Owning a Home?
- Property Taxes
- The HVAC System
- Condo and HOA Fees
- Home Insurance
- Plumbing System
- Electrical System
- The Roof
You will need to pay taxes every year as a homeowner, which is a must, and you cannot deny this. The bank does not determine the property taxes you have to pay; instead, the township would fix the tax payment for you. They would value it according to your residence, which could be 500 or 1000 dollars a year.
Remember, the home tax varies depending on the area you are living in, plus your asset as well.
The HVAC System
Another hidden cost of owning a home is the ventilation, heating, and air conditioning system of the house, which is shortly HVAC system. Probably, you may need to purchase new units at some point of entering the home because the existing ones could wear out over time. And when you replace old furniture with a new one, you can use it effectively for years to come.
However, ensure you inspect the HVAC system of your house once a year at least. There are many companies that offer contract plans for this maintenance system; you can take help from them.
Condo and HOA Fees
You are more likely to pay a monthly or quarterly fee when you buy your home from the condominium or homeowner’s association (HOA). Usually, this charge covers up the services that benefit your entire neighborhood, for instance, the snow plowing or garbage collection.
Keep in mind that the HOA fee could rise over time, or the association may need to charge a special assessment.
Home insurance is not a hidden cost; when you issue a loan from a bank or mortgage company, premiums are most likely included in the mortgage payment. But keep in mind that the premium you have to pay is likely from your escrow account. And annually, the premium rises according to the value of your property.
But unfortunately, sometimes, you may have to purchase extra coverage against any disaster or flood, or earthquake that the insurance company does not cover.
The plumbing cost is another hidden cost that occasionally happens no matter which area you live in. And the interesting part is that plumbing cost is not a big deal to fix when you have basic plumbing knowledge.
Plumbing costs include the water line system of your house, the gas line, etc. If you find a clogged pipe or the gas line is not working, you may need to contact the plumber.
Every homeowner should have a basic idea about the electrical system of the house to keep the home safe from any wanted accident. If you find any systematic problem, you should call a trained electrician to ensure the things are installed correctly.
Most of the time, people ignore the maintenance of the roof, which should not be denied. That’s because a leaky roof can cause the inside damage of your house, which could be severe. Generally, roof damage occurs when the fascia becomes loose, soffits, cracked, etc. Remember, a roof needs to be replaced every 15-20 years.
Generally, mold creates damping areas or humidity that can cause health problems. And mold can spread throughout your home every time if the HVAC system is contaminated. And mold can cause asthma, allergy, or other serious health issues. So, maintaining this thing is another hidden cost of owning a home.
Other hidden costs include maintenance and home repairs, lawn care, termites, utilities, and so on.