New Homeowners: Take Note of These Homeownership Expenses

Posted: October 1st, 2020

Buying a home is one of the most important investments you can make in life. A major asset in your portfolio, purchasing a home and paying a mortgage helps you direct your hard-earned dollars toward your own equity rather than putting your money in your landlord’s pockets. It also offers you special tax benefits and could even help you improve your credit score as long as you make your mortgage payments on time. 

If you’re a first-time homebuyer, the price tag that comes with purchasing a home may be a little overwhelming. Between your down payment, your closing costs, and your reserves, you’ll need to save more than a few thousand dollars before you’re ready to sign. And heads up: you’ll still encounter some new fees after you’ve finished at the closing table. According to Zillow, the average homeowner in the U.S. incurs around $9,080 in costs related to owning a home. Here are a few homeownership expenses you shouldn’t overlook when preparing to buy your first home: 

Maintenance and Repairs

If you’re transitioning from renting to buying, you’re probably used to your landlord or your management company taking care of your maintenance issues (or at least we hope so). As a homeowner, you’re responsible for choosing your contractors and setting your own times for maintenance. The upside to this is that you can choose to work with exactly who you want to work with; the downside is that it takes more of your time and money.

If you’re not sure where to start in finding the right vendors to take care of your maintenance and repair needs in Brevard County, we offer a comprehensive list of preferred vendors. Your Realtor can discuss other options with you that may suit your needs.

Property Taxes

Taxes can be confusing for anyone. Some first-time homeowners may be surprised to know that their property taxes are not set at a fixed rate. Your city may reassess the taxes and values assigned to your property, so the amount you’re paying now may increase in the future. While your real estate professional will give you an overview of the information you need, get acquainted with the Brevard County Tax Collector’s website (or your local tax collector’s office) for more information on your property taxes. You’ll want to familiarize yourself with the Homestead Exemption and filing to ensure you get the applicable credits.

Homeowners’ Association Fees

Homeowners’ associations provide for important community improvements, like maintenance of common areas, clubhouses, neighborhood parks, and even common utilities in condominium associations. While they’re beneficial when they work well, be sure to read the fine print about when dues can be raised or additional charges can be added.

Putting it in Perspective

Don’t let these extra expenses frighten you out of your home purchase decision. Instead, think of this list as a cheat sheet to help you prepare for the best homeownership experiences possible. Homeownership is an incredible journey; not only is it a great way to boost your financial health, but also, it’s the best way to live your life the way you want to. To learn more or to take a walk through one of our available properties, call Ellingson Properties at 321-750-7050.