It is very important to understand the cost of being a housing owner, exceeding the cost of down payment and mortgage if you are buying a house or for the first time.
You need to understand housing insurance, property tax, maintenance, public interest business, association costs, and other unexpected costs.
Housing insurance
If you want to buy a house or a condominium, get an actual insurance estimate of the real estate you are considering. The estimate of the annual insurance cost stadium is 0.5 % of the house’s value. However, it is not an estimate, but the actual cost.
Consider whether the area you are considering is likely to cause natural disasters such as hurricanes, tornadoes, and mountain fire. The annual cost of housing insurance in areas where natural disasters are likely to occur may be tripled or over the national average.
In the later year, it is necessary to consider that inflation is likely to increase and increase instead of decreasing and decrease.
maintenance
According to the Zillow and Thumbtacks report in 2023, daily home maintenance is about $ 500 per month. If you buy an old house, you need to estimate that it exceeds the cost. These estimated values are the appliance repair and the care of the lawn. New roof costs, air conditioners, water heaters, etc. are more expensive, so you need to consider the age of those items. Many experts recommend that 1 % of budgets a year to cover large items. You can check the real estate website for additional estimates.
Association cost
The association’s fees can be hundreds of dollars a month, depending on the selected house or neighborhood. For example, I own an apartment in a well -built apartment and paid more than $ 900 per month for membership fees. It was worth it because of the quality and property in the neighborhood. After living for only two years, I was able to sell real estate for more than 15 %.
Make sure that it is not a special one -time evaluation in addition to the annual association fee. If possible, ask if an agent can get recent association meeting and financial statements. This helps to identify the current problem. It also determines how stable the annual association fee is.
Property tax
Usually, property tax is usually 1 % of the house value every year. However, the state and the neighborhood are significantly different. Generally, tax laws increase as the asset values in the neighborhood increase. It is necessary to investigate whether there is a proposal for future support in an area where property tax is increased. Read local newspapers and judge local business conditions.
Utility
Agent, seller and neighbor determine the scale of the utility invoice. U.S. housing owners spend $ 3,000 on average energy, including electricity and natural gas.
others
If you have a school -age child, make sure that the local school system is the same or more as the school system you leave. If you are away from your current job, you need to consider other factors such as commuting expenses. Other factors to consider are the convenience and relevant costs of local restaurants, entertainment, grocery stores, department stores, and medical experts.
Conclusion: Before making a final residential decision, we closely analyze the costs related to the ownership of the house and the indirect or other factors. If possible, consult your neighbor and ask how satisfied they are in this neighborhood. He will buy in the neighborhood where neighbors are dissatisfied with the local situation.
Elliot Raphaelson welcomes your questions and comments on raphelliot@gmail.com.
