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The Price of Home Ownership: Planning Ahead

By on March 11, 2012 in Money

The Price of Home Ownership: Planning AheadOwning a home goes way beyond the monthly mortgage payment you’re expected to make. Especially if you are first time homeowner, but even if you are not, it’s wise to learn how to budget and save for the unexpected. This way, if you have a plumbing emergency, need a roof repair or another unexpected home expense pops up, you’re prepared to respond.

Do a House Inspection

If you are buying a home, make sure that you have a professional home inspection completed before going through the purchase. A professional inspector does a thorough evaluation of the property from top to bottom and from inside to outside. The evaluation is to identify any small or major issues that are currently wrong with the property or when you can expect for the roof to need replacing or the life remaining on the air conditioning unit.

If you have a house inspection, you have a basis for how much money you should be putting away in a savings account for the house and the time frame as to when you will probably need to spend that amount.

Establish a House Account

Even if you already have a savings account, you need t establish a totally separate savings account to prepare for possible housing expenses. Some banks even allow you to give your bank accounts nicknames. If this is the case with your bank, then name your account “The House Account,” or something that denotes this is your emergency fund for house repairs and replacements.

Price and Estimate Big Ticket Items

Some of the big ticket house price items you should estimate repair and replacement costs for are:

  • Heating and cooling units
  • Plumbing
  • Appliances
  • Roof

Putting together an estimate of some of the common repair costs in these areas can help you determine how much money you should try to save on a monthly basis, so you will have the money when the time comes to replace or repair these items, or other unexpected costs that may pop up.

When you take the time to prepare for unexpected housing expenses, it won’t set you back as much financially as it may if you are not prepared. Many homeowners, especially first time homeowners, worry about the cost of the mortgage, utilities and normal living expenses when owning a home. The problem is that numerous unexpected expenses can and do pop up. When you plan for these expenses ahead, however, you will be prepared and the extra expenses won’t catch you off guard.

About the Author

About the Author: Husband, father, tech junkie and sports enthusiast. I have owned and operated as well as a number of others sites since 2005. .


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