The Murzzy Blog
In the US alone, more than 60% of the population own their homes. It’s true that there are many benefits of homeownership but the cost is its biggest downside. Spending all your cash on the down payment is just the start. You need to be aware that there are so many other expenses to face when it comes to being a homeowner. These expenses may come unexpected; leaving you in a panic. Here are ways to better handle your homeowner expenses.
Revise Your Budget Based on New Expenses
You might think that your budget from your rented apartment is not too far from what you should expect in your new home. This is often a misconception and is what usually drives new homeowners into debt.
Aside from your mortgage, you have to consider that a bigger space will generate higher electricity costs. If you choose to have your own lawn, you need money for its maintenance as well. There are so many changes in your budget that you need track it for at least a month or two and create a new budget with the data that you gather.
Emergency Fund for Maintenance and Repairs
Renting an apartment also had its perks. While renting, you can always rely on your landlord for repairs in the apartment. However, being a homeowner is totally different as you have to spend on your own repairs and maintenance. This is important to consider because you always want your home to be in excellent condition.
You can calculate your repair and maintenance expenses based on how much your home costs. Most homeowners pay at least 2% to 4% of their house’s value for annual maintenance. After coming up with your calculations, you need to save up an emergency fund dedicated for maintenance and repairs so you are always prepared if something happens to your roof or a pipe leaks in the house.
Save for Property Taxes
Being a homeowner also entails paying property taxes that is probably new to you if this is your first home. Property taxes are computed based on your home’s value and the current tax rates. However, keep in mind that taxes have tendencies to rise every now and then so you shouldn’t be complacent with the numbers given by your assessor.
Protect yourself by preparing for tax adjustments and leaving room in your budget to accommodate the extra expense. This way, when your property tax goes up, you won’t be scrambling for money and end up getting a loan.
A great insurance company can be your partner in protecting your home while keeping your finances at bay. At Murzzy SRI Inc, we take pride in making sure our clients are well-protected at prices they can afford. To learn more about how we can help you please contact our agency at (877) 929-2612 or Click Here to request a free quote.
Call Toll Free: