The Homeownership Expense Many First Time Buyers Forget

Buying a home is about more than the mortgage payment. One of the biggest expenses first time buyers sometimes overlook is maintenance.

That does not mean your new home is going to constantly break down. It simply means that, unlike renting, you are responsible for taking care of the property and keeping it in good condition.

Think of Maintenance as Part of the Monthly Budget

A common rule of thumb is to set aside about 1% of your home's value each year for maintenance. On a $400,000 home, that would be about $4,000 per year, or roughly $333 per month.

That does not mean you will spend $333 every month. You might spend very little one year and then need a new furnace or water heater the next. The point is to build a cushion before you need it.

In my experience, homeowners who plan for these expenses tend to feel much less stressed when something eventually needs attention.

The Age of the Home Matters

A newer home may have fewer immediate repair needs, while an older home could require more attention. The condition of the roof, furnace, windows, appliances, plumbing and other major systems can make a big difference.

This is one reason I encourage buyers to look beyond the list price. Two homes with the same purchase price can have very different ownership costs.

You Don't Have to Be a Handyman

Maintenance also does not mean you need to know how to fix everything yourself.

Some homeowners enjoy tackling projects on their own. Others would rather call a professional. Either way, having money set aside for routine maintenance and unexpected repairs gives you options when something needs attention.

And remember, maintenance is not necessarily money lost. Keeping the roof in good condition, replacing an aging furnace or updating parts of the home can help protect the value of one of your largest investments.

What About Condos and Townhomes?

The type of home you buy matters, too.

With a condo or some townhomes, the association may handle certain exterior maintenance and common areas. That can make ownership simpler, although those costs are typically reflected in your association fees.

With a single family home, you generally have more responsibility, but you also have more control over the property.

Buy the Home You Can Comfortably Own

One thing I tell my clients is that I don't want them buying the most expensive home they qualify for. I want them buying a home they can comfortably own.

That means looking beyond the mortgage payment and considering taxes, insurance, utilities and maintenance as part of the overall picture.

I've noticed that buyers feel much more confident when they understand the full cost of ownership before they make an offer. There is no perfect house that will never need a repair. The goal is to find a home that fits your budget, your lifestyle and your long term plans.

Homeownership Comes With Responsibility. It Also Comes With Opportunity.

Yes, things will eventually need to be repaired, replaced or updated. But those expenses are also part of maintaining something you own.

The key is not to be afraid of maintenance. Plan for it, budget for it and buy a home you can comfortably afford.

Based on an article from Homes.com. Read the main article here: https://www.homes.com/learn/maintenance-is-the-homeownership-expense-many-first-time-buyers-overlook/