Which Forgotten Housing Costs Could Strain Your Budget the Most?

First-time homebuyers often forget to factor in all the costs of owning and buying a home. Before you get into the shopping process, it’s important to make sure your budget can support the new costs you will be dealing with. Here are some of the forgotten housing costs you may need to factor in before moving forward with your home purchase.

Moving

The cost of moving can set your budget into a tailspin if you’re not careful. Whether you plan to rent a truck and do it yourself or you plan to hire a moving company, you need to factor in the cost. If you’re moving from outside of New Orleans into the city, moving may be more expensive than moving from one New Orleans neighborhood to another.

Make sure you get an estimate early in the process before you actually have to move. Then, you’ll know what to expect when moving day arrives and your budget won’t go haywire.

Home Maintenance

The cushy life of calling your landlord when something breaks is gone. Homeowners have to handle their own repairs and maintenance. If the HVAC goes out, you have to pay to have it replaced or buy those window units until you can afford it. Everything from the shingles to the lawn is now your responsibility.

You can estimate that you will spend about 1% to 3% of the purchase price of your home in maintenance a year. This means, on a $300K home, you will spend $3,000 to $9,000 per year for maintenance. Monthly, that comes out to $250 to $750 per month.

Before you buy a home, make sure you can handle the maintenance. In addition, just because you were preapproved for a $300K home doesn’t mean you have to buy a $300K home. You can also choose one of the New Orleans condos if you prefer a lower maintenance housing option, but you want to be a homeowner.

Utilities

Even if you’re paying utilities as a renter, homeowner utilities can be shocking. You’ll likely go from a smaller space to a larger space, which means higher utility costs. In addition, many apartments build some of the utilities into the rent, such as garbage collection, water, sewage and maybe even electric or gas.

New Furnishings

You have a new home, so naturally, you’ll want to make it your own with some new furnishings. In addition, your old furnishings may not be enough to fill the home the way you want. Make sure you factor this into your budget.

Time

Buying a home means you will likely need to miss some work to move, close on the home and handle other tasks. Make sure you factor this missed time into your vacation day plans or into your budget.

Improvements

While you could buy a home in great shape, it will likely need your special touch to make it your home. This could include painting, renovating and remodeling. Before you purchase, consider how you will pay for these changes and factor them into your budget.

There are several hidden costs you may have forgotten about when it comes to buying a home. Make sure you factor every cost into your budget before you choose the home that fits you right.