There are many old and new homes for sale on the market. If you decide it is time to retire and enjoy a life that is rent-free, good for you. There is no point in arguing renting vs. buying here. It is obvious having your own home is what is truly important. Here is a little more information about what owning a home will really cost, and why you might need more money than you think.
The Transaction Costs
When you buy, you obviously have to pay for the transaction costs. There are many government entities and a bunch of professionals like realtors, bankers and others who wait for you to pay them their share. These costs are the most daunting ones when talking about home ownership. You would need a consistent sum of money to be able to pay everyone. For a $100,000 house, you may pay $15,000 in transactional costs.
You Will Have to Take Care of the Insurance
It would be wise not to believe in self-insuring that much, especially when you get to owning a home. As said before, there are many great homes for sale, but you also need money to keep you afloat after you have bought one. The math for home insurance goes like this: per $100,000 in housing cost, expect to give around $45 per month in property insurance. This is an estimate. Insurance is mandatory, especially if you have a mortgage.
Taxes Have to Be Paid
Property taxes are something homeowners can't get rid of. Homes for sale available don't come with their taxes paid for a lifetime. After the house becomes yours, you'll need to take care of all the property taxes that come with it. For a $100,000 property expect to pay somewhere around $85 a month property tax. It is an expense you need to take into consideration, as it isn't at all low.
Maintenance Costs Are Also Included
Don't imagine that after you have bought a house, you are free and you will only have to pay for mortgage (if you got it on mortgage), insurance and taxes. There are also the maintenance costs. It doesn't matter how new the house was when you bought it, you will always need to fix stuff like drains, pipes, electric sockets and even toilets. Things change once you're no longer renting. You become the one responsible.
Contact a trustworthy real estate agent. Start to look for new homes for sale and move in as soon as you are financially prepared. It is a great journey to go on, as long as you are aware of the costs that will go into homeownership.
Hello, my name is Ben Hatten. Welcome to my website about selling your home on the real estate market. When I was ready to sell my home, I thought that the process would go smoothly from start to finish, so I did not acquire help from an agent. After learning about all the things that could go wrong, I decided to enlist the help of an agent to sell my home with assistance. I created this site to help everyone prepare for the process of selling their home with help from an agent. I hope you will come by often to learn more. Thanks.