As the housing market changes, buying a home may seem like a wise investment. However, there are hidden costs about home ownership that you may not see coming. We’re breaking down the pros and cons of renting vs buying a home. You might not know about these hidden costs that can really pile up when you own your home. If you are looking at the cost of home ownership you need to consider these things!
Renting Vs. Buying: The Cost of Home Ownership:
A good budget and some research will help keep you from any surprise costs! Make sure you plan for these items when looking at the cost of owning a home.
Taxes are a big part of the cost of home ownership. Depending on the region or school district they can be thousands of dollars each year. When you are a new homeowner especially, this can be a big shocker for the cost. When renting the taxes are included as part of your cost each month. No surprise bills twice a year to sneak up and shock you!
When living in an apartment you don’t have to worry about the upkeep or maintenance on your included appliances. When it comes to heating and cooling systems the cost of home ownership can increase dramatically when compared to renting. Add to that things like stoves, refridgerators, and more and you could be looking at many expensive repairs or replacements over the course of your life in any home. Not to mention if you rent a completely furnished apartment you don’t have to make that big upfront investment in purchasing appliances. When you move into a new home you will likely have to put up a big chunk of change at the beginning to get yourself some appliances.
Major Home Repairs
Aside from renovations and general upkeep there are major home repairs to worry about when considering the cost of home ownership. If you roof starts to leak or your foundation gets a crack you are responsible for those costs. There’s no insurance that covers wear and tear. Homes wear and tear based on the weather and all kinds of other factors. If you purchase a home that is not brand new you might be looking at costly repairs that build up over time!
Lawn Care and Landscaping
It can be a very sneaky cost of home ownership to take care of the lawn and landscaping. Making your property look nice and keeping it maintained can be a huge time suck. If you don’t have time to take care of these things on your own you could end up paying someone to do them each week, which adds up over time. This is something that is taken care of when you rent!
Of course when you rent it is a good idea to have renters insurance to cover your belongings in case of an emergency or break-in but when you are a homeowner you have to insure your property in case of an accident or emergency. This is not optional if you have a mortgage so you have to calculate that cost when considering purchasing a home! There are always ways to save money but make sure you keep a good eye on the overall cost of home ownership!
Long Term Commitment – Unstable Investments
In the long term the cost of home ownership is part of the overall commitment. It’s much harder to resell a house than it is to pay out your lease when you decide that you want to move or relocate for work or personal reasons. The market is great for buying homes right now but we have no way of knowing if it will stay that way or drop again. Part of owning a home is being willing to possibly lose a lot of your overall investment in the long run. If you don’t keep up with things like landscaping, home renovations, and repairs you could also end up losing money if you need to resell in the future!