Rising Home Costs To Think About
We all know that the rising home costs of owning your own home can be very expensive. Sometimes, you can even significantly underestimate just how much the entire process is going to cost you. So, you have to be very realistic with yourself from the start.
Because when you are considering buying a property, you need to know the ins and outs to expect, so you can decide if it really is the option for you. Not only for the sake of your own financial future, but for your sanity right now too. One of the best ways to do this is to break down the rising home costs so that you can work out exactly what sort of total budget you’ll be looking at.
Of course, the very first thing that you’re going to need is the down payment. And this is usually the one thing that people get into their minds when they’re looking to buy a house. But it’s just the start, and not the total amount. In general, you’re going to want to have around 10-20% of the property value saved for your down payment. And that can be a lot of money on its own. However, it’s what most banks will be asking for, so you need to have the money available in case you do need the higher percentage.
But don’t be fooled into thinking that your down payment is all that you’ll need. Because you’re then going to need to pay fees on top of that too. As a start, the moving fees are likely to involve surveys, realtor fees, legal fees for closure, and sometimes more. This can be another four or five figure number in total! So you should definitely look into what the estimates would be for the kind of property or price range that you’re looking at, just so you can be prepared.
Then you’re going to need to insure the property too. And it’s easy to think that this is going to be cheap, but it may not be. You should use a home rebuild calculator to help you get the right estimates. Because if something were to happen and you don’t have the right level of coverage, it could really cost you.
From here, you’ve also got maintenance to think about. Even if you’re trying to cut back and keep your costs as low as possible, you do need to have some kind of home maintenance budget. A lot of the time, places will need fixing up before you can move in. Or if the place is fully finished, you still need contingency money should something go wrong.
And finally, you’re always going to need furniture! Okay, so you might be able to work with the bare minimum and gradually add in all of the pieces you need. But that’s not always ideal. Sometimes, you want to be able to move into your home and be happy and content from day one – and for that, you’re going to need a furniture buying fund!
Buying a house is so exciting and takes careful planning. It is wise to always factor in these rising home costs!