When buying a house, it can be easy to overlook the expenses involved beyond the initial payments you need to make, such as your down payment and closing costs.
While you may be familiar with regular payments like condo or HOA fees, homeowners insurance, and taxes, it’s crucial to understand that homeownership’s financial responsibility is diverse and ongoing. It extends beyond these regular payments, encompassing a variety of costs. Being financially prepared for these ongoing costs is not just a suggestion but a key to feeling empowered and in control of your homeownership journey. This is a contributed post.
If you’re considering homeownership and want to feel fully prepared, this post is for you. We’ll delve into the costs of owning a home, particularly a single-family dwelling, to empower you to make an informed decision.
New Roof
Typically, a roof will last anywhere from 15 to 50 years, depending on the construction materials it is made from, the environment, and the care and maintenance it had over its lifespan. As a homeowner, you will be responsible for any roofing repairs you might need, such as a roofing replacement, should this be necessary during your time owning the property. Talking to an experienced roofing company can advise you on the costs and work required for a fully functioning roof if you need any repairs or a replacement.
It’s important to remember that while your insurance will pay for damages to be fixed to your roof from events like a storm if you neglect to get repairs fixed over a prolonged period and it causes internal damage, you won’t be covered. Also, roof replacements are not covered if it’s due to wear and tear; it’s only an act of nature, so this is something you need to be aware of.
Structural Problems
Structural problems can be a massive headache for many homeowners and can in some cases be extremely expensive to rectify depending on the severity of the issue. For instance, repairing a severely damaged foundation can cost tens of thousands of dollars. Again like your roof your insurance company will only cover structural issues in some situations eg weather related damage, fire or vandalism. If it’s poor workmanship or wear and tear or neglect even, then you won’t be covered and will need to cover the entire sum yourself.
The different types of structural repairs you might encounter when living in a property can include but are not limited to foundation damages, roof, floor and external wall issues, and problems with structural walls internally. Knowing the signs of structural damage, how to avoid damage to the building, and the importance of getting this repaired should be something you are aware of prior to committing to purchasing property to rent or reside in.
Utilities
As a homeowner, you will be solely responsible for paying the utility bills for the property. You will also have to ensure that your electric and gas supplies and framework are in good condition. Damage to either of these vital components can be life-threatening to you and other properties and persons around the building.
As a homeowner, ensuring your electrical wiring is up to code, is fit for purpose, and doesn’t need replacing or is at risk of causing damage is crucial. While a survey can alert you of any issues upon moving in, these aren’t foolproof. Neglecting repairs can lead to more significant problems, so being cautious and responsible is important. This sense of caution and responsibility will make you feel more aware and prepared for the challenges of homeownership.
The same is true for any gas supply you have in your home. All gas pipework needs to be in good condition to avoid any gas leaks, and all gas appliances need to be connected correctly and kept in a good state of repair to avoid any potential problems due to escaping gas.
HVAC
You will likely rely on your heating and cooling system immensely during different parts of the year. And if your unit fails or succumbs to damage, then the cost of replacing it can really add up. On average, you can expect to pay around $5,000, although repairs and replacements can cost anywhere between $400 and $10,000.
While neglecting to get any repairs carried out will only render your unit useless or deliver a poorer output initially, it can cause further damage and lead to bigger problems over time. For instance, neglecting to service your HVAC system can lead to a complete breakdown, which can be more expensive to fix than regular maintenance. So ask yourself, what would you do if your HVAC failed, and how, as a homeowner, will you afford to repair or replace it?
Emergency Damage
Emergency damage can be anything from rotting floorboards giving way, your home succumbing to flood or storm damage, vandalism, or generally failing through neglect. While these are the more extreme cases, being proactive and prepared for the worst is a necessary step you need to consider when owning your own home. This proactive approach will make you feel more secure and ready for any unexpected challenges.
Windows and Doors
Lastly, for this list anyway, your windows and doors are an important aspect of your home, and over time, wear and tear and the elements can cause them to become damaged and unfit for purpose. The average lifespan of windows in the US is 15 to 30 years, so in many cases, it’s unlikely you’ll need to replace them if they don’t sustain damage outside general wear and tear.
Doors can also last the same amount of time depending on the material they’re constructed with, their construction, fitting, and how they’re cared for. However, if you need to replace a front door, it can cost anywhere from $500 to $10,000, and more, for custom doors. While windows cost approximately $750 per window for materials and labor included, on average, prices can be anywhere from $500 to $1,500 per week.
Homeownership is a dream for many Americans, and there’s no reason why it still shouldn’t be. By going into this endeavor, knowing exactly what you could expect to encounter and the costs involved in maintaining your home so it’s habitable can help you ensure you have the finances to support your life and your essential bills, as well as handle anything else the house throws your way. Being financially prepared for these potential costs is crucial to the success of your homeownership journey.