You’re paying a good bit of money for rent and when you calculate a mortgage payment for a modest house, it could actually be less costly than your rent. This might sound great at first, but there are many added costs to owning a home that you don’t have when renting an apartment.
When renting, if a pipe bursts or an appliance breaks, you can simply put in a work order with the landlord and it’s taken care of. When you own a home, you have to call a plumber and pay him for repairs or pay to replace the broken appliance. Home repairs, maintenance, appliances and furnishings tend to be expensive, making an emergency savings fund critical to successful home ownership.
Also, at an apartment complex, landscaping crews usually mow the grass and take care of any landscaping issues. If you own a home, you are responsible for mowing the lawn and keeping your property in decent shape. You can purchase your own lawnmower or pay a landscaping crew to do the work for you.
Chances are, your new home will be larger than your apartment. This will lead to higher utility bills. Also, you have to insure the structure itself, not just your belongings like when you rent. Finally, you will need to pay personal property taxes. These vary by county, so where you buy can make a big difference in this cost.
While a mortgage payment on a modest home might be cheaper than your rent, you need to consider all the hidden costs before you decide to buy.
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