5 Bills You Always Have To Pay When You’re a Homeowner
Written by
Adam Palasciano
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If you’ve joined the nearly two-thirds of Americans who are homeowners, you’ve got an idea that it’s not as simple as just paying the mortgage. There are many ongoing financial responsibilities to consider when it comes to homeownership. From maintenance costs to property taxes, you’ll want to be prepared for expected (and unexpected) expenses.
These are five expenses that you’ll always have to pay if you own a home, according to Bills.com.
Property Taxes: These are taxes you have to pay for owning a property or land. They’re typically due to your state or local government each year. If you still have a mortgage payment, your property taxes are usually part of your monthly payment, what’s usually referred to by lenders as PITI (principal, interest, taxes, insurance). Property tax rates can vary significantly based on where you live. States like New Hampshire, New Jersey, and Illinois have some of the highest average property taxes. Meanwhile, states like Louisiana, Wyoming, and Alabama have some of the lowest property taxes.
Homeowners Insurance: While this is just another expense related to homeownership, it might just be the most important. Homeowners insurance is designed to protect your investment in your home. In the event of damage to your home as a result of a natural disaster, theft, or fire, homeowners insurance protects your assets and can pay for the damages. It’s usually possible to buy additional coverage for events like flooding. To add, homeowners insurance can provide liability coverage in case someone gets injured on your property.
Home Repairs: Owning a home will ultimately mean that things break along the way. These can include expenses like electrical and plumbing repairs, HVAC maintenance, roof replacement, appliance replacement, septic system repairs, and water heater replacement among others. It’s important to keep 1 to 3% of your home’s value set aside for home repair bills. If it’s a small problem like a leaky faucet, you might be able to tackle the issue on your own without having to spring for a maintenance person. However, it’s best to be financially prepared in case you have to spend money to fix an issue.
Maintenance Bills: Maintenance bills will always have to be paid while you own a home. These can include expenses like lawn care and outdoor landscaping, seasonal HVAC servicing, cleaning laundry ducts and vents, cleaning the gutters, and replacing smoke alarms and carbon monoxide detectors, as well as insulating windows and doors, and indoor cleaning. Similarly to repair bills, you’ll want to keep 1 to 3% of your home’s value set aside for maintenance bills. Otherwise, you might find yourself scrambling to come up with funds for ongoing maintenance expenses.
Utility Bills: Utility bills allow for access to basic needs and services when it comes to running a home. These can include expenses like water, electricity, gas, internet, sewer maintenance, as well as garbage and recycling collection. The type of home you own and the area that you live in will determine which kinds of utilities you’ll have to spend on.
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