Beyond the long list of costs related to buying a home, maintaining a home costs money, too. In this section, you’ll find information about the types of essential expenses you will need to budget for.
This will be one of your biggest on-going expenses. Speak with your bank about automatically deducting your mortgage payments from your account on a schedule that works best for you.
You must make sure that the monthly mortgage is such that you can afford it and that it does not squeeze your disposable income that will make managing your monthly budget and the mortgage payment difficult to keep up with.
Water, heating and electricity are all costs that you will have to cover as a homeowner. Services like Internet and telephony can quickly add up.
If you buy an apartment keep in mind that you will have condominium costs to pay. Costs include:
o General maintenance of the building’s common areas.
o Additional services and amenities, such as a swimming pool, lift maintenance, lift telephone line.
Check whether a portion of your condominium fee goes to a reserve fund to cover expected large expenses relating to building maintenance or whether one off fees for, say, major unexpected repair will require you to contribute over and above. Also make sure you obtain a condominium payment schedule so that you are informed when such fees will increase and how they will increase.
Maintenance and repairs are a normal part of homeownership. To avoid an unexpected financial shock, it’s important to save for repairs and other unexpected expenses. Regularly set aside savings to pay for these on-going costs.
Home insurance can help protect your home and its contents in case of theft, loss or damage to the inside and outside of your home or property. It may also help you cover additional living expenses such as the cost of living in a hotel or renting a home if you are temporarily unable to live in your home.