Posted on: July 31, 2017If you’re new to homeownership, you may find that there are more bills than you originally expected. Drafting a complete house expenses list goes far beyond the basics like utility and water bills. You’ll have a whole host of new costs to think about, though these also come with a new level of freedom. Though you’ll have to handle yard maintenance, you’ll finally get to plant your dream garden. You might pay for recycling, yet have the opportunity to choose a more comprehensive pickup service. To make sure your new home budget is on track, here are a few of the costs you should plan for in your new home.
House Expenses List
- Building and Property Maintenance
- System Maintenance
- Homeowners Insurance
- HOA Fees
TaxesProperty taxes pay for all the programs and services that make your community a great place to live. Your property taxes can be paid in various ways, so it’s important to understand how you’re handling this expense. If you have a mortgage, your lender may set up an escrow account for estimated property taxes. Every month you’ll pay a portion of the property taxes so you’re not hit with a big bill all at once. The loan servicer pays your property taxes from this account. Of course, no system is perfect. If the loan manager doesn’t pay the sum on time, it can result in late fees. Keep a close eye on your escrow account and follow up to make sure it’s handled correctly. If you’re paying property taxes yourself, you may want to follow the escrow example and set aside a portion of the expected sum each month so you’re prepared when taxes are leveraged. Looking at past property taxes for a home will give you an idea of what to expect. However, you should keep in mind that tax rates can increase unexpectedly. Some districts will allow you to pay your taxes in installments so if you would prefer that, check with the city and county to see if that option is available. Your property tax payments will go up if the value of your home increases for any reason. For example, a major home renovation will likely increase the amount of your annual property tax. Many municipalities and counties offer protection against sharp tax increases with homeowner’s exemptions. Check into the availability of that in your area and make sure you take advantage of any savings.
UtilitiesIf you’re accustomed to renting, you may have enjoyed a situation where some or all of your utilities were rolled into your monthly rent for you. As a homeowner, you’ll be responsible for paying these bills yourself. This includes:
- Gas (where applicable)
- The Internet and/or cable