When looking at a property, what are the factors that you care about? Let’s see: location is important; living close to work, a plus; nice view, good neighbors, … But at the end of the day, a key factor will be the price. And it’s important to remember that what you eventually pay for your home is going to be different than just the sales price! Here are some additional “hidden costs” to remember:
Condo Fees
If you purchase a condo, you are likely to be charged monthly condo fees to cover the cost of maintaining the common areas such as the lobby, front yard and roof. Sometimes, the condo fees will also cover utilities of the whole building, meaning that while you don’t need to pay for electricity, heating, etc., your condo fee will be higher.When buying a condo, make sure to ask what the condo fee covers.
Single Family Home/Townhouse Maintenance Costs
Living in a single family home or townhouse gives you more freedom but at the same time it is more responsibility. You will need to either take care of everything, from the lawn to the rooftop, on your own, or pay others to do it. As a result, even though you don’t pay condo fees, you should factor in the cost of having to take care of your yard, roof and building yourself.
Closing Costs
Regardless of the type, when you purchase a home, you will spend money on “closing costs,” which include your home inspection, appraisal, closing costs, insurance, and taxes. We will go through each of these items in future articles of the Home Purchasing 101 series.
And don’t feel discouraged - we are here to help prepare you. By learning about all the costs of homeownership now, you will be empowered to make an informed decision from the very beginning!
- Jyothi Ramakrishnan
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