7 Expenses Every Custom Homeowner Should Expect
Owning a custom home is a journey that most individuals only embark on once in their lives. Therefore it is easy to focus entirely on construction prospects and ignore what comes after your ownership of a custom built home.
While you might have prepared your mind and pockets for construction and purchase costs, there are certain, easily overlooked expenses that might land you in trouble if you aren't sufficiently prepared to handle them.
1. Hazard Insurance
Also known as homeowner's insurance. This insurance protects you as a homeowner from financial liabilities in the event of property damage, theft, or other unforeseen circumstances.
So, depending on your chosen insurance policy, the cost of homeowner's insurance will vary. However, we recommend that you develop your homeowner's insurance in tandem with your auto insurance.
2. Property Taxes
This is arguably one of the most significant expenses you will incur as a homeowner. They are taxes levied based on the assessed value of your property.
Depending on where you are, property tax varies according to state law. So, you have to remember for every house you own, you will pay a corresponding property tax.
3. Communal Upkeep Fees
If you are situated in a community that has a homeowner association, expect to pay communal Upkeep fees, otherwise known as homeowners association (HOA) fees.
The upkeep fee caters to the maintenance of common areas in your new community. And they vary significantly depending on your location and the amenities your community provides. On average, HOA fees range from $100 to $1000. It could however cost up to $2000 in high-end luxury areas.
The concept of utility bills is by no means foreign to us. More so, if you've been renting prior to acquiring your home.
Costs incurred from utility payments must not be underrated. Utility bills for homes come with heavier price tags than those for apartments. So, be prepared to pay more than you are previously used to when you move to your new home.
5. Home Maintenance Costs
Now that you own your house, maintenance and upkeep responsibilities solely belong to you. You're now responsible for making repairs in the home and keeping it in good condition.
Expect to spend on purchasing handy tools and other equipment necessary to keep your house in shape.
6. Appliances and Furniture
Expenses incurred from purchasing appliances, gadgets, and furniture might not apply to you if you already own them.
If you don't own them yet and didn't acquire them with your house, you have to be prepared for purchase expenses. The cost of house furniture, lighting, appliances, gadgets, and other necessities can add up to significant expenses.
7. Unexpected Costs And Repairs
Whether a house is properly maintained or not, unplanned repairs and emergency expenses will certainly crop up.
You might need to replace appliances, repair gadgets and major systems, fix damage due to natural or artificial accidents, or renovate certain parts of the home to keep it functional.
As you prepare your budget for building or acquiring a custom built home, ensure that you make allowances for housing-related expenses outside acquisition costs.