When you purchase a home, you need to factor in costs. Not only do you need to factor in the price of the home and mortgage/taxes. You also need to consider the actual costs of maintaining your home. Don’t forget about the following bills that could add up and require a big chunk of cash each year.
Each home usually pays utilities such as electric, phones, cable/internet and water. One thing I learned the hard way is that these items can really add up. Is your home well insulated? Your heating and cooling bills may be high if your windows don’t keep the warm air in and cold air out. Your thermostat will be pumping to keep up with the temperature. This means a hefty electric bill. Make sure you shop around for electric and do an apples to apples comparison to make sure you are getting the best deal on electric. Do you have a large family that requires many baths/showers or loads of laundry. This could affect your water bill. Depending on how big your house is and what you and your family desire you may have a large cable bill. How many cable boxes do you need? The more you need the higher your bill will be. Do you have a lot of members of your family? That may require a higher quality and faster internet speed, which means charges added to your bill.
Do you have a lot of land and landscaping? Your yard needs to be mowed in spring, summer, and fall. If you plan on doing it you may need to purchase a large lawnmower which could be a large amount of money. If you plan on paying someone to do it than you need to add that to your monthly budget. Same with landscaping and weeding. Who will mulch and weed? If you are doing it yourself it still costs money to purchase the materials. If you are paying someone than you need to take that into consideration as well. Do you have a large driveway? Do you live somewhere where it snows? A snow removal service may be required, or a purchase of a snow blower is needed. Fall also requires a cleanup of the leaves.
Most people don’t want to think about it but often times things may happen to your home that may require fixing or maintenance. Roofs, plumbing, heating and cooling equipment, etc. are not only high maintenance but highly costly to replace and fix. This means that it is expensive to have someone come out and repair or maintain, but the cost of materials is high as well.
All of these things need to be considered when evaluating your budget or even when you are going to purchase a home.