Owning real estate property is great, but it’s also expensive. Of course, the cost of the actual property is likely to be pretty high, but there are also a number of other expenses that come with owning a property that you may or may not have remembered. Before you buy your first real estate property, make sure you know what expenses to expect.
Interest
If you take out a loan on a property, no matter where the loan comes from, you’ll be expected to pay interest. It’s important to calculate what the interest will actually cost you before agreeing to the loan. Even a low interest rate of only a few percent can end up costing you almost as much as the house itself over the entire course of the loan.
Insurance
It’s never a good idea to own a property without insurance. If something were to happen to the property without insurance, you become responsible for everything. This can include anything from a fire that could destroy the entire property, to a child getting hurt just inside your property line.
Taxes
Of course, taxes aren’t even an option. Generally, taxes aren’t particularly high and in most cases, property taxes are only paid to local governments, but it’s still important to include them in your calculation.
Maintenance
What happens if your heating unit breaks, or if a pipe starts leaking? It’s smart to do your own maintenance work as much as possible, but even if you do, you’ll still have to pay for materials.
Need more help calculating the total cost of a property? Liberty Land Transfer is a Pennsylvania-based title company dedicated to fostering long-term relationships. Our clients know us for our diligence, flexibility, and attention to service. Contact us – we’re experts, and we’re happy to help.