Owning your own home for sale is a nice idea for many people. A place of your own, no more rental expenses and being able to decide all the furnishings yourself. Not to mention the value you create by paying off your mortgage. Of course, that sounds wonderful! But with a purchase home comes many (additional) costs. What costs are involved in buying a home? Read along darlings!
Buy or rent? Read about the advantages and disadvantages of both here.
Mortgage charges
For a home for sale, you will most likely need a mortgage. The maximum term of a mortgage is 30 years which means that during this time you must pay off your mortgage in full. Each month you pay this repayment and, in addition, interest is charged by the bank.
It is important to make sure your mortgage costs are not too high. Should you face lower income in the future, you should still be able to continue paying your mortgage. Therefore, before purchasing a home for sale, talk to a mortgage broker to know where you stand.
Also, when you buy a home, you have to deal with transfer taxes. These rules changed last year, for example, people under 35 who buy a house have an exemption from the 2% transfer tax up to 4 tons. If you are over 35 or the purchase of your home exceeds 4 tons, you will pay 2% on the purchase price.
Tip: Last months we saw a lot happening, in all the craziness, that people started borrowing to the max. 100% on 2 full-time salaries. And if you really want a nice house, we understand the eagerness, but this can turn out wrong. For example, if people break up, or if you lose your job. So try to keep some air.
Charges and taxes
As a homeowner, you face various fees and taxes. Think of municipal taxes such as water taxes, sewer tax, water board tax and property tax.
Municipalities often have a lot of freedom in setting rates. As a result, you pay more in one municipality than another. The OZB is a percentage of the WOZ value of your home. The municipality may adjust this percentage annually. So what the actual cost will be depends on your home.
Fortunately, there are also tax advantages such as the mortgage interest deduction that you can deduct from your income when you file a tax return.
Insurance
There are also a number of insurances you need to take out such as legal expenses insurance, home insurance, household insurance and liability insurance. Further, a mortgage often automatically comes with term life insurance. You can often get one or more insurance policies from the same insurer for a package price, and of course it always pays to compare different policies.
Maintenance
There is also the maintenance of one’s own home. How much this will cost on an annual basis depends very much on the condition of the property. You may want to have your home better insulated in the long run. Or will painting need to be addressed over time. If you maintain your home properly, it will only maintain its value in the future.
Do you want to purchase a house for sale? Then make sure you have a good overview of the costs involved. That way you know where you stand from the beginning and can take it into account.
