Many people in Chicago often fail to take into consideration while shopping for real estate the costs of caring for their purchases. After saving up for down payments and homeowners insurance, many of them think that the only expenses they have to worry about are their closing costs. Little do they realize is that there are many other costs they need to set aside money for.
Maintenance issues like roof repairs, gutter cleanings and heating and cooling concerns can really start to add up. When homeowners overlook these responsibilities, they risk major repairs and expenses in the long run. According to Realtor.com, “homeowners should try to set aside at one percent of their home’s purchase price for maintenance costs.”
Homeowners are responsible for their own repairs. Repair issues often happen at inopportune times and can present financial challenges for people who do not have money set aside for them. Anyone who plans to purchase a home should also save up money to cover the costs of repairs. People who purchase older homes should save up more money for unexpected repair issues.
Homeowners must pay property taxes on their homes. These taxes help to support their local communities and schools and parks, states USAA.com. Many people set up escrow accounts that allow them to pay most of their homeowner costs from the same account they pay their mortgages from. People who have fixed rate mortgages should keep in mind that their property taxes can change and cause their housing expenses to increase.
Buying a home is a big and often expensive responsibility. Buyers should carefully evaluate their financial situations and plan for the long-term, even if they are still in the shopping stages. They should also take some time to research all expenses that are related to purchasing real estate so they do not find themselves with more home than they can comfortably afford.