Buying a home is one of the most exciting adventures in life. It’s also one of the most expensive investments you’ll ever make.
There are far more costs to new home ownership than you know about going into it and that’s why you should have a savings account. You’ll find additional expenses right from the beginning, costs you weren’t told about that are routinely assessed to all home buyers and costs that no one, least of all you, expected.
Here are a few of the reasons you should keep on saving before you buy:
Repairs on plumbing, the roof, a furnace, or even the electrical wiring can all come as a surprise. You expected that these features of your new home would be intact and in working order but that doesn’t guarantee they will be. It can cost a considerable amount of money to fix things that on the surface looked good, but underneath were in disrepair.
Many times a pest inspection is required prior to a conveyance. Termites, ants, roaches and other unwanted guests can create unexpected expenses in both structural repairs and pest removal. An exterminator can be an unexpected expense and be a continuing one if the pests are persistent. However, its so much better to fork out for an exterminator to give the green light on a property than end up buying a crumbling house.
A licensed building inspection isn’t cheap. If this burden falls on you without your having prepared for it the costs can be staggering. Having a home professionally inspected before you pay for it is wise, of course, since many of the hidden repairs that need to be made will come to light and can be dealt with in the conveyancing. A licensed inspector will probably save you money in the long run but it will nonetheless be expensive.
Transferring ownership on a home is a legal obligation and it can be a major cost factor. You’ll be wise to look around for the best deal. Conveyancers work on a sliding scale according to your home’s value or on a flat rate basis. Shop around for the most inexpensive conveyancer and use the money you save for other expenses.
Moving into a home sounds exciting but it costs plenty in gasoline, truck rental, fast food meals and other incidental expenses. It’s a truism that moving always costs more than you planned on.
The bottom line is this: keep saving, stash a sizeable amount of your money into a high interest savings account until you’re ready to make the step into home ownership. There’s sneaky, hidden costs when buying a house and you can be ready for them. Be careful not to just jump head first into buying a house…even if there is an enticing first time home buyers incentive.