Until you've done it, there's a good chance you're a little naive when it comes to the cost of owning and running a property. And then, it's not as if you have many options other than to fork out and extend your line of credit. When the HVAC unit goes on the blink, you're not going to freeze in the middle of winter for the sake of a couple of bucks!
Thankfully, if you're not on the property ladder, or if you are and want to cut costs, there are ways to be prepared for the worse. Then, the nasty replacement and repair fees that rear their ugly heads won't be as damaging as they might have been previously.
To help you get prepped, here are four of the hidden fees associated with property ownership and how to keep them to a minimum.
House Insurance Policy
From your car to your pet and vacation, you need insurance for almost everything in your life. For whatever reason, a policy covering the contents of your home doesn't spring to mind even though it's the main asset in your life. Considering the property itself and your belongings are worth a small fortune, it's an essential investment.
To keep the price down, you need to shop around on comparison websites for an excellent deal. You must factor in what you need and don't need too. Adding something to a policy, although it will increase your premiums, might save you a considerable sum if there is a break-in or you're a victim of crime. An advanced loan calculator will show you every expense so that you can work out which quote is the most suitable.
A piece of advice: keep up on credit card payments. Late fees affect your score, and insurers can raise your rates based on their assessment of your risk.
Taxes
The government won't let you own a house without getting their cut. For the privilege of being a citizen of the United States of America, you can expect to pay Uncle Sam a hefty fee. Aside from contributing to public services such as fire and police departments, your property taxes will also fix roads and go towards grants and bursaries.
There's a reason they are the biggest earner for the government, so you won't get away with not paying property levies. With that in mind, it's savvy to head to MLS and to see what the taxes are in advance before signing on the dotted line. Remember that amounts of specific charges differ depending on the state.
If you don't work out the figure and divide it by twelve for the monthly cost, your budget will take a hit. Sometimes, it's better to rent for this reason.
Property Upgrades
Sure, upgrades are non-essentials. If you don't have the money to pay for them, you won't splash out. It's that easy. However, it isn't when you think about it rationally. As well as being a home, your property is an investment that could set you up for life if you organize your affairs correctly. Therefore, add-ons become more pivotal than ever.
Without adding modern and timeless features that buyers love, you won't be able to increase your house's value. As a result, you might break even on a sale if you're lucky. Choose wisely and the money you spend on a renovation could create a considerable sum further down the line. You might want to avoid cosmetic touches as they don't add much value but can cost hundreds of dollars per year.
If you need to decorate, pick a classic style that will last so that there's no need to do it all over again when summer arrives.
Kids
Chances are, you've got a house that is ready for family expansion. Having children is a step a lot of property owners take once they have settled down. And, it's not only the maintenance of havings kids that's going to be expensive - it's the way they treat your home!
Little boys and girls draw on walls, break windows, and smash ornaments around the house, forcing you to fix or replace the damage. It might seem like an insignificant amount of money at the time, yet it adds up over eighteen years, more if you have kids years apart. There's no way to negate these expenses if you're broody, but at least you know about them now.
So, they won't be as much as a shock when you tally up the figure out of curiosity in later life!
