34 Haynes Rd, Townsend, MA 01469
The cost of owning a home is much more than just your mortgage. There is a sizable list of additional costs prospective homeowners should plan for when thinking about buying a home. Here we will go over the primary additional costs of home ownership you might not have thought of.
Property taxes are common enough in real estate conversation that you probably expect them. However, what you might not expect is just how much of an expense they can be. Property taxes differ from one area to the next but average out at around 1.1% of your home’s assessed value. While it doesn’t sound like much, property taxes can cost you up to $1000 per month in some states and municipalities.
Homeowners’ insurance is another expense you were likely prepared to deal with. However, because homeowners’ insurance does not cover absolutely everything, you might get stuck dealing with costly incidents on your own financial terms. Natural disasters like floods, earthquakes and hurricanes usually require separate insurance policies and can vary in cost depending on where you live.
Issues with a home’s electrical wiring can come with both risk to your safety and your wallet. Electrical shorts are a common cause of fire that can damage or destroy your home depending on the severity. Even poorly installed outlets or switches can pose potential harm or be expensive to fix. You will need to hire licensed electricians to repair or inspect for problems with your electrical system to make sure everything works properly and up to local codes and safety standards.
Plumbing problems like clogged toilets or shower drains are fairly common household issues that you can usually handle on your own. A little basic plumbing knowledge and the right tools will help you fix the smaller problems, but sometimes your plumbing can work against you behind the scenes. If you have an older home, the pipes might have mineral buildup which can affect your water pressure, allow clogs more easily and in the worst cases weaken the pipes to the point of leakage. Pipes have to be replaced by a licensed plumber which can add up quickly—regardless of any potential water damage that may occur.
Termites can cause extremely expensive damage to your home. Termite damage, whether existing or ongoing, affects the structural integrity of your home and can lead to safety issues. Specialized termite damage inspectors can help you identify any risks or existing damage so you can avoid the much more expensive task of cleaning up the mess later.
For many, one joy of homeownership is having their own outdoor spaces. Unfortunately, the upkeep of your outdoor spaces can be more costly than many homeowners expect. Landscaping projects come with the obvious upfront costs of labor and materials, but there is also an ongoing cost to make sure everything stays alive and beautiful. There can also be unexpected landscaping expenses, like damage from roots or cleaning up fallen trees.
Many of these costs are potential rather than guaranteed. However, the more prepared you are for an expense, the easier it will be to handle the issue when the time comes. Keep these costs in mind when determining the cost of buying your own home.
Rental properties are becoming extremely common in the world we live in today. Many people are realizing the huge profits they can make from rental properties, and the need for these rentals isn’t going away any time soon. If you’ve ever wanted to be a landlord and rake in some cash on the side, you’re not alone. However, buying rental property isn’t always easy and there are some things you should understand before getting the keys to your new home.
Make Sure You’re Ready
The fact of the matter is, owning rental property is harder than it looks. From insurance and laws to home repairs and dealing with tenants, it can all be a very time-consuming and stressful job owning a rental property. And if owning property isn’t your full-time gig, the process can be even more difficult. Make sure that you do your homework and that you’re prepared for anything that can happen regarding your new property. Research everything that needs to be done for a rental owner, then also look up how to manage tenants properly. Also, managing a property takes a lot of time and energy, especially if it’s your first time. It's also important to have the right schedule while managing a property. While you can still have a full-time job, you should have the flexibility to meet with the tenants and take care of repairs or issues when needed.
Keep a Proper Budget
When owning rental property, you’re owning a home that can see damage, which can be very costly. And if you don’t have the money to handle repairs and disasters when they strike, then you could have a home just sitting there with no tenants interested. This is why you should always budget for the unexpected. Some examples of what can go wrong include:
Be Cautious of a Fixer-Upper
While you’ve always had a dream about buying a fixer-upper and creating something incredible, this dream doesn’t pan out for many. That’s because many of these people bite off a little more than they can chew, and they don’t have the time, energy or resources to really build something profitable. Therefore, you should be very cautious before trying this method for yourself. It is possible to make money from a fixer-upper, but it takes tons of work and can be very difficult, especially if you’re buying your very first rental property. Dealing with one of these properties might require spending thousands on materials, hiring professionals, dealing with plumbing issues and possibly dealing with structural damage. While you may be very tempted, try looking for a property that needs a few simple renovations and one that is priced below market value.
Preparation is Key
Before you jump into buying a rental property, consider the three tips outlined above to have confidence throughout the process. This will ensure that you're well-prepared for what's to come. Fixing a home, dealing with tenants and paying for insurance can all be stressful, so it's best to understand these responsibilities before purchasing a rental property.
235 Old Dunstable Rd, Groton, MA 01450