The great thing about purchasing your very first home is that you can stand in the middle of your backyard or on your balcony and scream at the top of your lungs, “I’m a home owner!” Well don’t yell that loud, your neighbours might call the cops instead of ringing your doorbell with a freshly baked welcome-to-the-neighbourhood pie. At Morcan Direct we want you to move into your first home and get right to the expressing-your-joy-about-being-a-home-owner-and-getting-a-slice-of-that-delicious-pie phase without a headache. In order for you to have that smooth transition here’s a list of common costs faced by new home owners.
Repairs
Things happen to homes over the years, some of which aren’t in our control like a furnace breaking down, air-conditioning units needing replacing, or a leaky roof. Sure these are less frequent expenses but you should always be prepared. Experts in the housing field recommend setting aside 1-3% of the value of your house yearly to cover such costs.
Upkeep of Your Property
Certain areas of your property might require seasonal upkeep such as fences, wooden decks, lawns and gardens. You can cut costs by doing the work yourself but you should still budget $300-$500 per season for planting supplies etc.
Maintenance
To keep your house in working order you’ll need to have your carpets cleaned. You’ll have to change your furnace filters and touch up your exterior, and in some cases, interior paint. Although these are not major costs they can run up to $400 a year.
Home Insurance
Prices will vary depending on the type of home and neighbourhood you reside in but protecting your home, its contents and your property is worth it. Home insurance will set you back approximately $500-$700 per year but you’ll feel better knowing that you’re covered.
Security
Having a security system installed in your home is recommended, even if you have home insurance. Security companies can charge anywhere from $20-$200 a month for alarm systems but this is an extra cost you shouldn’t blink at. Some companies will even offer rebates if you have home insurance.
Municipal Services
Each municipality is different. Some charge fees for services such as garbage removal or water. Not all municipalities charge the same amount for services so be sure to investigate prior to moving.
Transit and Fuel Costs
After your move you may be commuting a longer distance to work or to drive your children to school. Maybe you’ll have to take public transit more often? Pay for parking on a regular basis? Factor these costs into your monthly budget.
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