Dwelly | Digital Property Assistant

Count the Costs

Written by Dwelly | April 8, 2022

Most people will agree that the most expensive purchase in their life will be the purchase of their home. It is typically a major goal in adulthood to be a homeowner. It is so important that we are willing to commit to thirty years of debt for it. Unfortunately the purchase price of the home is only the beginning of the costs. Below we will discuss some of the recurring costs that  may accompany that goal of ownership.

There are annual costs that occur with home ownership. One that will vary widely depending on location is property tax. These taxes are levied by state and local municipalities and will vary state to state and even city to city.There are property tax exemptions or discounts for senior citizens, veterans, and homesteaders.These may vary from state to state. So it is a good idea to inquire what your tax might be so that you may be able to budget for that. Many home loans may pay your tax as part of your mortgage and pass the cost on to you.

Maintenance fees and/or Association fees may be a cost that you will need to address as well. If you live in a townhouse or condominium there will probably be a maintenance fee that you pay. Of course this is something you must budget for; however, the advantage is that you will have less responsibility in caring for the actual unit. Having the maintenance of the building the responsibility of the association can be a nice luxury. If you live in a distinct neighborhood you may be required to pay an association fee. This can occur annually, quarterly or even monthly. While this fee may seem extravagant, neighborhood associations are there to maintain the integrity of the neighborhood. Your fee may go to keep the common grounds looking nice, decorating the entrance to the neighborhood, and even providing security. The association should detail what is included in the fee.

Insurance is a necessary expense that you will want to arrange at the time of purchase. You will need to have the actual home and the contents of your home covered. This will protect your investment. These expenses can be paid either monthly, semi-annually, or even annually.

Other costs that might need to be addressed as a new homeowner are lawn care, pest control and security monitoring. Lawn care can be a minimal expense or extravagant depending on your approach and the size of your lawn. At the very least it could be a small lawn mower and an hour on the weekend. If your home has a large yard and you have little time, then a lawn care service might be best for you. Again pest control is varied depending on how much you want to do yourself. You will need to keep the termite bond current which is relatively inexpensive. If you want monthly pest service from a company, the cost will increase. You can also provide the monthly pest service yourself with a little spray. Lastly, security systems and monitoring have a wide range of prices. There are so many types of security systems available with monitoring or without that there should be a system that works for every budget.

Along with the recurring costs of owning a home, there are also those unexpected costs that seem to happen out of nowhere. That clogged toilet, broken pipe, and leaking water heater will happen when least expected. It is best to try to have an emergency fund to take care of those unexpected repairs. 

Dwelly has developed our own budgeting app to help plan for the ongoing costs of owning a home.  We can help you plan and budget for the recurring expenses as well as remind you when to pay them. Help for those unexpected emergencies can be just a fingertip away at your Dwelly emergency contact site.