![]() Other communities may also charge HOA fees - even regular housing developments may have communal areas and charge fees to maintain them. The more features the community offers, such as guarded gates, swimming pools, gyms, etc., the higher the monthly fees or dues may be. Homeowners Association FeesĬondominium owners save on some of the above-mentioned costs (the external building repairs and maintenance are taken care of by their associations), but they have to pay homeowner association (HOA) fees. It could easily be twice this amount in areas subject to hurricanes or tornadoes. If your property is in a flood zone (as designated by the Federal Emergency Management Agency) you'll be required to buy flood insurance as well.Īdditionally, if you keep valuables like jewelry, electronics or artwork in your home, you may need to buy extra coverage.Īccording to the Insurance Information Institute, the average cost for a homeowner's insurance policy was $1,272 in 2019, the latest data year available. Unless you buy a condo and it's included in your homeowners association dues, you'll need to get a homeowners (hazard) insurance policy, and you may also want to purchase extra coverage if earthquakes, mud slides, tornadoes, hurricanes or tsunamis are possibilities in your area. You pay for a lender's title insurance policy along with other mortgage costs, and may want to buy an owner's title policy, too. However, as a homeowner, you need a wider range of insurance coverage to protect you and your mortgage lender against loss, and pay for protection against both property and financial risks, and these can add up.įor example, your mortgage lender requires that you get mortgage insurance if you put less than 20% down. If you're a renter, you might have a renter's insurance policy, a low-cost way to protect your belongings. What does home maintenance entail? You may be surprised - check out our home maintenance timeline to see what you may be taking care of each year (and beyond) if you want your home to be in good working order. That covers most repairs, and you're responsible for a co-payment or deductible of perhaps $50 to $75 per incident. One way of smoothing out the budgeting a bit is to purchase (or get the home seller to purchase) a home warranty. These costs are spread out over your home ownership period, but unfortunately, you usually have to pay for them up front (or finance them and pay interest on the cost). A roof or heating system replacement done this year may never have to be done again in the time you own your home, for example. If this sounds like a lot of money to have to come up with each year, it's important to know that you are unlikely to spend all of that cash every year. ![]() Put money aside each month for these expected expenses and save yourself a lot of grief when a repair arises. Whether you estimate repair and maintenance costs using your home's square footage or as a percentage of its value, the total to put aside could be between $3,000 to $6,000 per year for a $300,000 home, or $2,000 to $4,000 for a 2,000 square foot home. How much is home maintenance? A good working rule of thumb is to budget 1 to 2 percent of your house's value each year for home maintenance costs another method is to allocate $1 to $2 per square foot of your home per year. ![]() The only thing worse than experiencing repair issues is having no money to take care of the problem. And your plumbing seems all but guaranteed to fail when you're expecting house guests. Heating systems almost never die in the summer they expire in the winter. Home appliances tend to break at the most inopportune times. ![]() How much is home maintenance?Įxpect the unexpected. Here are some costs of home ownership that a class or counselor might explain. Mortgage calculators, while very useful for coming up with rough estimates, are no substitute for the detailed budgeting exercises that home ownership education can give you. Potential buyers can input their income, current bill payments and perhaps property tax rates and insurance costs, and the calculator kicks out an estimate of what they should be able to spend on a home. Many prospective home owners use a home affordability calculator. Consider these "hidden" costs involved in owning a home when determining how much you can afford to spend on your new house. Estimating the true cost of home ownership isn't as easy. Your monthly payment includes property repairs, taxes and even some or all of your utilities. It's pretty easy to budget for the roof over your head when you rent.
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