Have you recently purchased your first home? Congratulations! Now, the fun begins! You’ll learn a lot in the first year of owning your new home, including how much money to set aside for certain expenses. Still, you don’t want to be caught off guard and overstretch your budget. Knowing what to expect in your first year of being a homeowner can be incredibly useful. It can help you budget accordingly and keep your finances on track. Below, we’ve discussed some important expenses to keep in mind for first-time homeowners.
Common Expenses for First-Time Homeowners
Owning your first home is exciting, but it can also be stressful. You’re stepping into new territory and doing something you’ve never done before. During your first year of homeownership, you may experience a mixture of feelings including joy, anxiety, gratitude, and the occasional moment of panic.
Staying on top of your finances can help eliminate a lot of stress and make your homeownership experience more enjoyable. As a first-time homeowner, you’re bound to incur some costs, but they’ll be much easier to handle if you can prepare for them beforehand. Here are some expenses you’ll want to keep on your radar:
If you took out a mortgage to buy your home, your lender most likely required that you purchase homeowners insurance. Homeowners insurance protects you financially in the case of an unexpected event like theft or damage to your home. Costs for homeowners insurance range widely depending on the area you live in and the particulars of your home.
Most homeowners choose to pay their property taxes along with their regular monthly mortgage payments. However, if you’ve elected to handle your taxes on your own, you’ll want to make sure you leave room in your budget.
Utilities – Water, Electric, Sewer, Etc.
You’ll want to set aside some money to pay deposits for starting utilities like water, electricity, gas, and internet. Within the few first months, you should have a good idea of how much money to set aside for ongoing utility costs.
Appliances, Furniture & Decor
There’s no sense in owning an empty home. You’ll want to set aside room in your budget for buying appliances and furnishing your new abode.
Tools & Equipment
As a homeowner, you’ll want to have some basic tools and equipment on hand that you can use for maintenance. In addition to buying a lawnmower to cut the grass, you may also want to consider purchasing gardening tools, a pressure washer, ladder, shovel, hand tools, and a couple of power tools.
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