Expenses of Home Ownership

Home ownership involves more expenses than just paying back the money you may have borrowed.  Consider these expenses when looking for a home or investment property.  In all cases, you will owe taxes.  With a financed deal, this will be built into your mortgage and will increase your monthly payment.  With a cash deal this will come due all at once, so make sure you have some money set aside for taxes.  Insurance is another expense.  Your lending institution will require this and will also add this to your mortgage.  Again, with a cash deal be sure to set aside money for this if you decide to insure your property, which is highly recommendable. 

There are also other expenses that you may not consider.  For instance, lawn maintenance.  Even if you do it yourself, you will have to buy equipment, maintain it, and repair/ replace it as needed.  If you pay someone to do it for you then you have another monthly expense related to your home.  General home repairs are another expense that is regularly recurring.  There are many parts, and systems that go into a home and all of them have a life span.  Some properties also have HOA fees or regime fees that must be paid. 

When thinking of how much you want to spend on a property, take into consideration all of the expenses that run with a property, not just the purchase price.  

Lee Hamilton

Allen Tate

803 322 4340

[email protected]