The Costs of Maintaining a Home

Posted by Dan Wolf on Tuesday, January 12th, 2016 at 7:58am.

If you own Anchorage real estate, or if you're thinking of buying some, you've already made a good decision - real estate is one of the strongest investments around! It's so different from other types of investments, which helps make it particularly profitable. However, there are several costs besides your monthly mortgage payments associated with owning property. Although it's generally still more than worth it, it's important to consider all of these expenses, both prior to purchasing the property and while you own it. Here are a few costs of maintaining a home.

 

Insurance

If you owned your house out-right, insurance wouldn't be required, however it's extremely important and would be foolish not to have it. Any lender would require homeowners insurance be in place.  If you didn't pay the premiums, they would put insurance in place for you and make you pay - it's that important.  You never know what will happen to your property. It could burn down overnight. A couple of particularly nasty renters might destroy the interior. Things that you haven't even thought of yet could happen at any time. As negative as that sounds, you can get through almost any property loss or damage. However, it's much more difficult to absorb the cost of an event like this without insurance. With insurance, an accident might still lead to the loss of some priceless things, and will definitely lead to a lot of frustrating paperwork, but in the end, the insurance company will likely pay for the loss.

 

Taxes

It has been said there are two things we can't escape, death and taxes.  One of those pesky inevitabilities in life, taxes are required, a necessary part of owning real estate. Fortunately they comprise a very small part of the cost, so they're not insurmountable - just be sure to include them when considering your budget or household expenses. Prior to purchasing your Anchorage Municipality or Mat-Su Borough home, check out the municipal or borough website to research assessed values and property taxes. This will give you a much better idea of your home's annual taxes before getting too far into the purchase.

 

Home inspectionRepairs

While hopefully not as consistent as the other costs of home ownership, repairs can be costly, both financially and time-wise, and include everything from repainting the front door to replacing the heating system. It can be difficult to predict these types of expenses, especially in the short run, so be sure to have a 'buffer' savings account dedicated to things that come up in life including home repairs. If you'd like to get a better idea of what kind of unique situations we experience here in Anchorage, talk with your Realtor - he/she will give you a list of common issues.

 If you're trying to budget your expenses for a piece of Anchorage real estate and would like some help, please feel free to contact us! We're experts and can help you with anything you need. Talk to you soon!

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