There are many benefits to home ownership, so it is easy to see why there are a number of people who are interested in purchasing a home. When you buy a home, you are investing your monthly payment into a property that will be yours to keep, instead of flushing your money down the toilet every month for rent payments. But, it is important that you understand the costs of home ownership, so that you can be ready for this investment.
Basic Costs of Home Ownership
To compare home ownership to renting, you need to consider all of the money that will be spent on an annual basis. With rent, you calculate monthly payments, utility bills, and any other fees or charges that are incurred to live in that space. There are a few additional things that need to be considered when you move into your own home.
The mortgage payment is the most obvious payment that will be required, and this payment includes both the interest and principle portions of the loan. Plus, you need to be ready to pay for these costs as well:
- Homeowners Insurance: A policy to help pay for repair bills if the property is damaged for some reason.
- Property Taxes: Annual fees that need to be paid to the city, county, and state.
- Utilities: Home owners often find that utilities are a bit higher in a house, compared with an apartment.
- Repairs and Maintenance: Things that a landlord typically covers in a rental, which will need to be paid out-of-pocket when you own the home. For example, painting, yard care, appliance replacement, and more.
- Real Estate Fees: Many real estate agents require a certain percent in commissions when you close on the home. These fees can be drastically reduced by choosing a flat-fee real estate agent, such as Duffy Realty of Atlanta.
There may be other unexpected costs that need to be considered as well. Look at the commute that will be required from your new home, because you might incur more transportation costs depending on the location. Another expense might be the cost of buying more furniture if you are moving into a bigger property.
Managing the Costs of Home Ownership
Even though there will be a few extra costs when you buy a home, these expenses can be affordable if you put together the right plan. The most important thing that you can do is have an emergency savings account, so that money is available in case the hot water heater goes out or you need to hire a contractor to help with something.
Also, keep in mind that you can save money by selecting the right location for your home. Certain areas have a cheaper cost of living compared with other neighborhoods, so when you are buying a home you need to talk with an Atlanta real estate agent to find a property within your budget.
At Duffy Realty of Atlanta, we are experts in the Atlanta real estate industry and we want to help you maximize your investment in a new home. Contact us to learn more about whether you can afford to buy a home: (678) 318-1700