Local Real Estate Expert Shares the 4 Most Common Hidden Costs of Homeownership

By February 1, 2019

Equivest Homes offers an efficient, effective answer for homeowners who are looking for an alternative to foreclosure or repairs they cannot afford or finance.

Conventional wisdom dictates that when you are able to qualify for a mortgage, you should get started on the property ladder. But property ownership in Raleigh, NC isn’t a good option for everyone; it requires active management and a constant injection of cash over and above the mortgage repayments.

According to Equivest Homes’ owner, Michael Porter, this is something that they see over and over again, “People feel that they need to own a property, but once they take ownership of their new home or investment, they find that the additional costs of running a property can be overwhelming or “life happens” and deals some unexpected cards like a loss of a job and all of a sudden you find yourself unable to pay the mortgage.” He went on to share some of the top costs that homeowners often neglect to factor into their budget.

Four of the most common and expensive hidden costs (over and above the cost of mortgage repayments) are #1 property taxes, #2 insurance, $3 maintenance and #4 time.

Help With Foreclosure Before You Need Help

Before putting an offer in on a property, work out what the property taxes will be every month (which you can find on the MLS listing) and add them to your mortgage repayments. Many prospective homeowners forget this important step, but there needs to be room in your budget to pay for them, as well as having a buffer to be able to pay these taxes when they increase. A major issue can arise if homeowners fail to save for their property taxes and unexpected increases to the tax millage. Failure to pay a tax bill turns into a tax lien and that can also lead to a fast foreclosure process. To help avoid foreclosure issues, save extra for your property taxes every month and year. 

The Rising Costs of Insurance for Homeowners in the Triangle

Another hidden cost is insurance. Insuring a stand-alone home is a lot costlier than a small apartment. You will need to budget for a higher insurance premium if you own an older house because it is more prone to electrical and other failures, and if you live in a high-risk area either security-wise or in a flood- or earthquake-zone, your insurance premiums will be higher. As with property taxes, insurance premiums often increase annually. Unexpected claims like acts of nature or burglaries can trigger the cost of paying a deductible. Homeowners need to be prepared for the unexpected to avoid foreclosure and other repairs that arise from these types of scenarios.

Fast Cash for Homes in Raleigh That Need Substantial Repairs

Maintenance is an ongoing, inescapable cost that comes with property ownership. Maintenance is necessary for the safety of those that live in the home, and for when it comes time to resell the property.  This can include any HVAC maintenance, exterior painting, plumbing leaks, and aesthetic improvements so the property does not become outdated. Replacing a Heating and Air Conditioning System will be thousands of dollars. Plumbing leaks and electrical problems can also become a huge issue unexpectedly. 

Sell your home fast call us at (919) 710-8383 we aim to closed the deal in a few days.

 

The Cost of Time and Mistakes Often Lead to Headaches

In addition to the financial costs of owning a home, one of the biggest costs that people neglect to include is the time cost. When you rent a property, if anything goes wrong you pick up the phone and give your landlord a call. When it is your own house, you are responsible for everything including doing research on who to call, being available to open the house for any repairs and following up to ensure that the work has been done correctly. Smaller jobs that you choose to complete yourself (such as repainting cabinets or replacing lightbulbs) all take time and effort.

There are many more hidden costs to owning a home including renovations, garden, DIY projects, cleaning, internet, cable and phone, pest control and safety precaution costs. Selling to Equivest Homes for cash is a good way to liquidate your capital that would otherwise have been tied up in mortgage repayments and the ongoing maintenance costs of running a property. From there you can invest the money into more passive investments that will require less time and effort to run.

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Equivest Homes in Raleigh has a well-established reputation for working with residents in the area to buy homes for cash. They provide advice and quick turnaround times on sales of distressed properties, working with full confidentiality offered to clients. In situations where Equivest Homes can offer their clients a cash sale, the transfer is often completed within two weeks and does not depend on the condition of their clients’ homes.

 

Lane A. Houk

Author Lane A. Houk

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