The Costs of Buying a Home in Ladera Ranch
Buying a home is one of the most exciting financial commitments that you’ll make in your lifetime. Contrary to popular belief, the cost of buying a home is never what the selling price is. There are always additional costs associated with owning a home. Depending on where you purchase your home and how much financial planning you’ve done, you may be able to save yourself from some of the additional costs of purchasing a home. Here are some hidden costs to keep in mind as you enter the home buying process.
6 Hidden Costs of Buying a Home
HOA Fees – These fees result when you purchase a property that is governed by a Homeowners Association. Not all homes have HOA’s in Ladera Ranch, but some do. It’s important to take into consideration if your future home will be governed by an HOA. If it is, you need to factor the cost of the HOA fees into the cost of your monthly expenses.
Private Mortgage Insurance – Also known as PMI, is only assessed if you do not have 20 percent set aside for your down payment at the time you purchase your home. If you don’t have twenty percent or more saved, you can still buy a home, but you will also have to pay the PMI. Depending on the lender, the PMI is assessed until you have reached 20 percent equity in the home. Save yourself the extra cost of PMI and have 20 percent or more saved when purchasing your home.
Home insurance – Living in California has its perks, but we still live in a state that is prone to natural disasters such as earthquakes and fires. The cost varies though, and even crime rates get taken into consideration when determining home insurance coverage. Luckily, the crime rates in Ladera Ranch are extremely low, so you probably won’t have to worry about that increasing your premiums. And you can always add or take away coverage if you so choose. Expect to pay at least $1,000 annually for home insurance.
Maintenance – You may not think about house cleaning, gutter cleaning, carpet and hardwood floor care or yard care when you purchase a home, but you should. These are things that every homeowner deals with on a daily, weekly or annual basis. In order to keep everything running smoothly and looking clean and presentable, especially if you live within an HOA, you have to do the work to maintain the home.
Some of these tasks you may be able to complete yourself and save some money. But tasks like resealing tile and grout, pressure washing the outside or professionally cleaning the floors are going to have to be outsourced, and that comes at an additional cost.
Property Tax – Everyone knows about property tax so it isn’t a hidden cost, but it is a cost that will always be there, whether you remember it or don’t. At the end of the year, you are expected to pay property taxes on your home, which is a percentage of your home’s value based on location. On average, most Americans pay about $2,000 in property tax a year. So when you’re going over the costs associated with a new home, don’t forget the property tax.
Renovations – Hopefully when you buy a home, it won’t be necessary to renovate right away. But that’s always something to be mindful of when purchasing a home. You never know when you might have to replace a broken pipe or when you will want to update the carpet flooring to something more modern. Renovation costs vary throughout the US, but setting aside cash for renovations when they arise is always a good idea.
Work with a Local Real Estate Expert in Ladera Ranch
Purchasing a home is a big deal. With all of the costs associated with buying a home, you want to make sure you’re working with someone who not only knows the market, but knows the area and can bring value to the home buying process. With more than 18 years working in Ladera Ranch and Orange County, I can help you find a home in a neighborhood that suits you and your family’s lifestyle. Call me today at 949-285-3215 to find your perfect home in Ladera Ranch.
Photo Source: 4 Merrill Hill, Ladera Ranch, CA
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