Seven is a remarkable number. Some say it is even a divine number. For example, there are Seven Virtues, and there are Seven Deadly Sins. At Palm State Mortgage Company, we know there are also Seven Secret, Hidden Costs of Home Ownership. Mortgage Brokers and Real Estate Agents know about these costs, and we hope to teach you how to plan for “Secret Costs 101!”
When you are planning on purchasing a home, there are only two expenses that are 100 per cent predictable: Your mortgage payment, and your interest. That is just the beginning of home ownership expense, as we are sure you are beginning to understand.
No matter how many economists warn buyers, it still seems they are irresistibly drawn to over-spending on their home mortgage commitment. We join those who warn you against over-spending on your initial investment. Why? There will be hidden costs associated with home ownership, costs that you do not anticipate. We have seven such costs to share with you. Because we feel that your understanding of these hidden costs is so important, we are making this blog Part One of our Two-Part Report on The Seven Hidden Costs Of The American Dream.
Part I: Big Three “C’s”
The Crazy Cost of Living: Across town or across several states, you will be surprised at how widely living costs can vary from one place to another. Advance research can help you save some bucks. Check out prices of obvious things like groceries and gas stations. Then look at the more subtle costs. For example, how much more gas will it cost you to go to work every day? You will undoubtedly enjoy life more if you incorporate this research into your monthly budget. No sense in being surprised, after you’ve invested in a move. For a little more research, the experts at CNBC publishes twenty hidden costs, so you can check those out, once you master our top seven.
The Curious Cost of Curb Appeal: Attention, all of you apartment and townhouse dwellers! If you have not been tending a yard, you have a shopping list to prepare before you can mow, trim, fertilize, or garden. Perhaps you are already an amateur horticulturalist, but you will have to purchase some shrubbery, plants and flowers. Have you thought about those special outdoor touches that will make your house your own unique home?
The Creeping Cost of Pest Control: Just because you have that nice termite inspection policy does not mean you are immune to other pests. Did you know that a good termite report does not guarantee you against a colony of spiders or an infestation of snakes? Moreover, just because there were no termites when the house was inspected doesn’t mean they won’t find you and settle down, right there in the wood of your home. Suddenly you might find yourself paying for the expulsion of other tiny “guests” from your home, or paying for inspections every few months instead of once a year.
In our next blog, we will bring you four more of our top favorite hidden costs. Remember, when you plan a budget for home ownership, a little research can save you heartache as well as money. Just as you plan emergency funding for family contingencies, sickness and accidents, you must now plan for a “sick” water heater or a deductible payment on insurance for an “accidental” storm. Perhaps our little warnings now will save you from financial disasters later. We’d say, that would be just divine. We here at Palm State Mortgage thank you for visiting our blog, and we hope you will return for Part II of our Secret Hidden Costs of The American Dream.
