Q: I have decided to buy my first home, but I am wondering what expenses I will have to deal with that my landlord previously handled? And how much should I figure on spending? ~ Anonymous A: The most common overlooked expenses by renters who decide to buy are insurance and property taxes.
Q: I have decided to buy my first home, but I am wondering what expenses I will have to deal with that my landlord previously handled? And how much should I figure on spending?
~ Anonymous
A: The most common overlooked expenses by renters who decide to buy are insurance and property taxes. These can be extremely costly and may make the difference between being able to afford a home.
In South Florida, for example, you have windstorms and in many cases flood insurance that are required by lenders. Other expenses are maintenance and replacement costs. Lease agreements usually specify that tenants only cover minor repairs and never pay for the replacement of anything unless due to negligence by tenant.
The thought of having to pay for new appliances, air conditioning units or major items like a new roof, can be overwhelming. We have, however, found that pride of home ownership usually makes up for that. A home owner is more willing to take care of items that belong to them and take preventive measures to avoid unnecessary repairs.
When budgeting for the purchase of a home, all of these expenses should be included into the monthly payment to calculate what you can and cannot afford.
~ Ines Hegedus-Garcia
Ines Hegedus-Garcia is a Realtor and owner of Miamism.com in Miami, FL.
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