6 Expenses New Homeowners Should Prepare For

It’s important for new homeowners to save money and plan ahead for unexpected expenses. Before buying a home, you should make sure you are financially prepared to cover the costs associated with homeownership. Below are some common expenses that new homeowners should be prepared for.

1. Property Taxes

Property taxes are one of the most important expenses that new homeowners will face. Your property tax bill will depend on the property’s value, location, and local tax rate. Property taxes are typically paid annually or semi-annually, so it’s important to budget for this expense. Most closing costs will be paid at the time of purchase, but some may be rolled into your loan or deferred to a later date. Be sure to ask your lender if you will have any closing costs due and when they are due. Some of these closing costs might also roll property taxes into the overall costs.

2. Homeowners Insurance

Homeowners insurance provides financial protection in the event of damage or loss due to fire, theft, or other disasters. It also protects you from liability if someone is injured on your property. Homeowners insurance premiums vary depending on the size of the home and its location. For instance, homes in coastal areas typically have higher premiums due to the increased risk of hurricane damage. It’s important to budget for homeowners insurance when purchasing a home. Not having homeowners insurance can put you at financial risk if something unexpected happens.

3. Plumbing Maintenance Costs

Every home needs some level of upkeep and maintenance, including plumbing costs. In 2018 alone, the plumbing industry made more than $107 billion in revenue, with plumbing repair and maintenance driving a large portion of that revenue. It’s important to plan for basic plumbing needs such as repairs, water heater replacements, and drain cleaning. You may also need to budget for more expensive projects such as sewer line replacement or leaky pipe repair. In addition, if your home is older, you may need to plan for more frequent plumbing maintenance.

4. Septic Tank Repairs & Replacements

Most home septic tanks must be cleaned every three to five years. This is an essential maintenance task to keep your septic system functioning properly. If you don’t clean or empty the tank, it can cause backups and damage to both the septic system and your home. Septic tank repairs or replacements can be costly, so it’s important to budget for them when purchasing a home. If you’re unsure how often the tank has been serviced, it’s best to stay on the side of caution and budget for a septic tank cleaning.

5. HVAC Maintenance Costs

Heating, ventilation, and air conditioning (HVAC) systems are essential for keeping your home comfortable and efficient. However, HVAC systems require regular maintenance to ensure they continue to run properly. Regular maintenance can help you save money on energy bills and prevent costly repairs in the future. Be sure to budget for regular HVAC inspections and tune-ups. If your system is older or hasn’t been maintained in a while, you may also want to plan for repairs or even system replacement costs.

6. Costs to Repair Doors and Windows

Over 68 million homes in the United States have double-pane windows, and most of these homes will need to replace their windows at some point. Doors can also be prone to wear and tear and may need repair or replacement after years of use. When purchasing a home, be sure to budget for potential costs associated with repairs or replacements for doors and windows. Both of these items are essential for keeping your home secure and comfortable.

These are just some of the expenses new homeowners should be aware of. It’s important to take the time to research and budget for all potential costs associated with your new home before you sign on the dotted line. This will help ensure that you’re financially prepared and have enough money for any unexpected expenses down the road.

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