Congratulations, you've decided to purchase your first home! Now comes the fun part of planning, saving, budgeting and sticking to it.
While the obvious costs such as mortgage payments and property taxes are usually considered when budgeting, here are a number of other items people often miss:
- Home insurance ($50 to $100+ / month)
To ensure you and your home are protected in the event of a fire, flood or break-in you'll want to ensure you've insured the home, not to mention that all financial institutions will require this should the home be mortgaged.
- Alarm monitoring ($30+ / month)
Alarm systems provide piece of mind and can tie into home automation systems to help you keep an eye on the property while away and keep you protected while home.
- Cable Internet, TV, Phone ($150+ / month)
While there are many alternatives to traditional cable television services such as Netflix, the monthly cost for a reliable internet service on its own should be accounted for.
- Exterior Maintenance
Most home owners undertake caring for the outside of their home on their own, however if you're new to the home ownership game you'll need to stock up on lawn and garden tools such as shovels, a lawnmower, trimmer, hose, sprinkler, rake, etc. There are ongoing costs such as applying fertilizer a few times each year, purchasing bags for garden waste, mulch for flower beds, etc. If you've purchased a condo, most or all of this is usually accounted for in your condo fees. For tips on how to get the nicest lawn next spring, check out this video.
- Water Heater Rental ($25 - $100+ / month)
More often than not the water heater is going to be rented. The cost depends on the type of water heater you have and whether you opt for an upgraded service/warranty plan. Depending on how long you intend on staying at the home you may want to consider the option of purchasing one out-right to reduce your monthly expenses.
- Interior Maintenance
Stock up on batteries for smoke alarms and emergency flash lights, purchase additional light bulbs to replace as needed, get a couple of fire extinguishers, replace furnace filters every few months, etc.
While this list may add up quickly, by planning ahead and being aware of all of the costs, you'll be better prepared to manage your expenses when settling into your new home. If you're in the market to purchase your first home and want to chat about what to expect and how to budget, give us a call or shoot us a text directly.
Ariel: (647) 464-0957
Adrian: (416) 707-8401
Ariel Kormendy | Adrian Trott
The Kormendy Trott Team
Century 21 Miller Real Estate Ltd., Brokerage