Home buyers tend to focus on their down payment, closing costs, and monthly mortgage bill when budgeting for homeownership. However, there are lots of other expenses that need consideration, too. The hidden costs in your first year of homeownership could amount to thousands of dollars. Here are 15 expenses that you may not be expecting:
1. Furniture
Most home buyers find themselves needing to purchase at least some furniture, especially if they’re moving from an apartment to a house. Your current collection may not fit the size or aesthetics of your new home, and you may have extra rooms to furnish. Furniture costs vary widely, but many buyers spend thousands of dollars in their first year of homeownership on couches, dining tables, bedroom sets, and more.
2. Lawn Equipment
If you weren’t responsible for lawn care at your old home, you’ll probably need to invest in some landscaping equipment after purchasing your house. The following are some of the most important tools needed for basic lawn care:
- Lawn mower
- String trimmer
- Rake
- Shovels
- Pruning shears
- Wheelbarrow
- Garden hose
- Gardening gloves
3. Tools
Almost all home buyers expand their collection of tools in their first year of homeownership. You may already have a toolbox with the basics, but you’ll probably encounter some repairs that prompt trips to the hardware store for new equipment. Although these are one-time expenses, they can add up to hundreds or even thousands of dollars.
4. Security System
A security system isn’t an absolute necessity, but it can give you much-needed peace of mind after buying a home. Most systems charge an up-front cost for the kit and installation service as well as a monthly monitoring fee. Prices vary depending on the size and complexity of the system, but you can expect to pay at least $200 for a basic kit and at least $10 to $20 per month for monitoring.
5. Landscaping
If you decide to hire a landscaper instead of handling lawn care yourself, you should expect to pay them around $50 per hour. Complex landscaping jobs could cost over $100 per hour. Even if you handle mowing, gardening, and basic lawn care on your own, you may still need to hire a professional for services like tree care, which is essential for protecting your property.
6. Snow Removal
Any homeowner in a cold climate needs to factor snow removal into their recurring costs. Plowing can cost $40 or more per storm depending on your location and the size of your driveway. If you plan to handle snow removal yourself, you’ll need to purchase a durable shovel or snowblower. Salt or sand for your driveway and walkway can add up, too.
7. Internet Installation
You may be able to set up the internet at your new house by yourself, but in some cases, internet service providers need to send a technician out for installation. On average, internet installation costs $50 to $100. Fortunately, many providers offer promotions to new customers, so you can probably lock in a low monthly rate for your first year. However, you should expect your rate to increase when the promotional period ends.
8. Utilities
While home buyers shouldn’t be surprised that they have to pay for utilities, there may be some unexpected utility costs associated with homeownership. For example, in many states, it’s the norm for landlords to pay the water and sewer bill. When you transition from renting to homeownership, this is an extra cost you’ll be responsible for. In some areas, trash pick-up is another surprising expense for new homeowners.
9. Window Coverings
In most cases, buyers have to purchase at least a few window coverings in their new homes. Blinds are usually considered fixtures, which means the seller must leave them with the house. However, if you decide to replace or upgrade the blinds, you could easily spend several hundred dollars. Curtains can be an additional expense as it’s unlikely your curtains from your old home will all perfectly match the new house.
10. Minor Repairs
Something is going to break in your first year of homeownership. Hopefully, you’ll only be looking at small repairs, like fixing a leaky faucet or a broken light switch. Even these little jobs come with a price, though. The cost of the replacement parts and tools needed for each job can add up.
11. Pest Control
Pest issues are one of the worst experiences new homeowners can have. While certain types of homes are more vulnerable to pests than others, all homeowners could benefit from an inspection by a pest control expert. This inspection can reveal possible entry points or vulnerabilities that put your home at risk of an infestation, allowing you to take preventative measures. After the inspection, pest control services can cost anywhere from $50 to over $300 per visit.
12. Gutter Cleaning
Gutter cleaning is another recurring expense that home buyers sometimes forget about. You may be able to clean the gutters yourself, but some homeowners feel more comfortable outsourcing the task to a professional. Gutter cleaning should be done twice per year, and it can cost a few hundred dollars per cleaning.
13. Weatherproofing
It can be difficult to predict how your house will withstand a cold winter or a hot summer. While your home inspection may give you some information about the property’s weatherproofing, when the seasons change, you might find that its current protections aren’t good enough. Here are a few of the weatherproofing tasks that you may need to pay for in your first year of homeownership:
- Sealing gaps in windows and doors
- Adding insulation
- Installing storm doors or windows
- Replacing damaged shingles
- Insulating pipes
14. Car Insurance
Location is one factor in determining your car insurance rates. When you move, you could see your rates either increase or decrease. If your new neighborhood experiences higher rates of car accidents, theft, or vandalism, you should expect your rates to go up. Additionally, if your commute to work is longer now, you may see a price increase.
15. Property Tax Increases
Even if you have a fixed rate mortgage, your monthly housing payment can go up. Home buyers sometimes see their property tax bill increase after their first year of homeownership. If your budget is already stretched thin with the other expenses involved in owning and managing your house, a tax hike can be worrying.
The costs of owning a home can seem never-ending. Utilities, maintenance services, upgrades, and other expenses will pop up all the time. Although it’s impossible to predict all of the costs you’ll face after buying a house, it’s important to think ahead to the best of your ability. By planning in advance for major expenses and including extra room in your budget for the unknowns, you’ll make it through your first year of homeownership without a crisis.
