Homeownership can be a valuable asset and help to carve out a path for a stable financial future. What is more, repaying a mortgage can often be cheaper than paying for rent, saving you money all the while the price of your property is hopefully increasing in value. That said, there are more costs to buying, owning, and running a home than just the initial purchase price and ongoing monthly repayments. To give you a better idea of the expenses involved in home ownership this article has collated some of the lesser-known and often hidden costs. 

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Property taxes and associated buying fees 

As a homeowner, you will need to pay property taxes. These taxes are determined by the town, city, or county in which your home is located but as a national average, it is around 1.1% of the home’s assessed value. 

There are also additional fees to consider when buying a property. Your property transaction will be subject to real estate law and you will require the services of a legal professional to assist with these matters. If you are undertaking a mortgage then you can also expect to pay arrangement fees, credit check fees, and further transaction fees. All of these fees and requirements can make the buying process a lot more costly than you first anticipated. 

Homeowners insurance 

This is not an optional expense, it will be required from your bank or mortgage provider before they agree to provide you with the loan amount. It is also important to note that just because you have undertaken homeowners insurance not every mishap or issue relating to your property will be covered. Basic policies are unlikely to provide extensive coverage so it is important you are fully aware of everything included within your insurance policy, as you will be liable to anything that falls outside of your policy. So if water damage is not covered and your home experiences a burst pipe, it could end up being a considerably high and unexpected cost. 

Maintenance 

As a renter, you can typically defer to your landlord to keep up with the basic maintenance of your property. As the homeowner however this responsibility rests with you. You will be required to keep on top of the roof, the gardens, brickwork, windows, decking, patios, and general upkeep of your home. This will involve ongoing expenses to ensure your home remains up to standard. Although it may be tempting to overlook ongoing maintenance requirements or to put them off, this will only result in your incurring a greater expense should the lack of maintenance cause further damage to your home. 

Safety 

Another very important aspect of homeownership is insurance for the safety of your property and the people in it. You can do this by fixing motion sensor lights to the exterior, installing alarms or CCTV, or lighting footpaths. All of these typically necessary additions will enhance the safety of your home but all come at an additional cost that you will be liable for.