Are There Any Hidden Costs When Buying A Home?
𝗔𝗿𝗲 𝗧𝗵𝗲𝗿𝗲 𝗔𝗻𝘆 𝗛𝗶𝗱𝗱𝗲𝗻 𝗖𝗼𝘀𝘁𝘀 𝗪𝗵𝗲𝗻 𝗕𝘂𝘆𝗶𝗻𝗴 𝗮 𝗛𝗼𝗺𝗲?
Making the investment to purchase a property is no small feat. There are many moving parts and plenty of expenses to consider.
Although making a down payment and ongoing mortgage payments are costs you're well aware of when buying a home, there are some other expenses that may not be on your radar - especially if you're a first-time homeowner.
Here are some examples of potential "hidden" costs you may encounter, so you won't be caught off guard:⠀
You must be covered with valid property insurance when you're a homeowner with a mortgaged property. There are a variety of factors that contribute to your premiums; for example, the location, value, and age of your property, the type of heating within your home, and your claim history, just to name a few.
You'll be responsible for paying your annual property taxes, which are based on the assessed value of your property. You can check with your lender to see you're able to add this amount into your monthly mortgage payment.⠀⠀
Common utility costs to plan for include heat and hydro, water and sewage, as well as phone, internet, and cable, if desired. You'll want to make sure you've contacted all of your providers to terminate service at your current location and have it ready to go at your new home.
There may be projects you'll want to tackle right away when you move into your new home - but also be mindful of on-going maintenance as well. From your roof, to your windows, to your furnace - and everything in between - depending on how long you plan to stay in the home, and the current condition of these items when you move in, you'll want to set aside a reserve for future upgrades and unexpected emergencies.
You'll be required to pay monthly fees for the common areas and upkeep of the property, if you choose to purchase a home or a condo within a strata.