Buying a home is a major financial milestone, and for many people, it’s the biggest investment they’ll ever make. But while the monthly mortgage payment is often the largest expense associated with homeownership, it’s far from the only one. In fact, there are a number of other costs that can add up quickly and put a strain on your budget. Here are seven of the most common hidden costs of homeownership:.
**1. Property taxes**.
Property taxes are a major expense for homeowners, and they can vary significantly from one location to another. In some areas, property taxes can be as high as 2% of the home’s value, which can add up to thousands of dollars per year..
**2. Homeowners insurance**.
Homeowners insurance is essential to protect your home from damage or destruction. The cost of homeowners insurance will vary depending on the size and location of your home, as well as the amount of coverage you choose..
**3. Maintenance and repairs**.
Even the most well-maintained homes will require occasional repairs, and these costs can add up quickly. According to HomeAdvisor, the average homeowner spends around $2,500 per year on maintenance and repairs..
**4. Utilities**.
The cost of utilities can vary significantly depending on the size and location of your home, as well as your energy usage. In general, you can expect to pay around $200-$300 per month for utilities, which includes electricity, gas, water, and trash removal..
**5. Landscaping**.
If you have a yard, you’ll need to factor in the cost of landscaping. This can include mowing the lawn, trimming the bushes, and planting flowers. The cost of landscaping will vary depending on the size of your yard and the type of landscaping you choose..
**6. HOA fees**.
If you live in a homeowners association (HOA), you’ll be responsible for paying HOA fees. These fees cover the cost of common areas, such as the pool, clubhouse, and playground. HOA fees can vary significantly from one community to another..
**7. Special assessments**.
In addition to regular HOA fees, you may also be responsible for paying special assessments. These assessments are typically used to cover the cost of major repairs or improvements to the community. Special assessments can be a significant expense, so it’s important to factor them into your budget..
The hidden costs of homeownership can add up quickly, so it’s important to be aware of them before you buy a home. By budgeting for these costs, you can avoid any surprises down the road and ensure that you can afford the true cost of homeownership..
