DISQUS

Bible Money Matters: Buying a new house is not cheap: Expenses not to forget when buying a new house

  • FFB · 1 year ago
    This is one reason we haven't jumped into a home yet. We want to make sure we can really afford everything after all of these fees are taken into consideration.

    Your property taxes - is that for the year or month? In NY property taxes can exceed $10K a year easy. Another reason we've waited (and are considering moving out of state).

    Thanks for the info.
  • Money Matters · 1 year ago
    our property taxes for the year are $2550 - which compared to some places
    might be cheap. It was just a big jump from the $500 we paid last year
    since you only pay on the land the first year when you buy a new house.

    Over 10k a year for property taxes? I'll be the houses cost a whole lot
    more out there too!
  • Ben · 1 year ago
    This is an excellent article...and just in time for my train ride home. I may be back with questions...
  • DanL · 1 year ago
    I agree this is a pretty good summary of the "forgotten" costs of homeownership. May I add that most transactions, including a refinance, will also require escrow reserves. These are prepaid taxes & insurance that can many borrowers do not account for.

    Although these are expenses you would be paying for anyways, often time borrowers fail to recognize they will need to come up with the funds required for reserves at the closing. You may waive escrows with most lenders, but it comes with a cost--usually about .25% of the loan amount.

    Feel free to contact me if you have any questions on this topic. Great post though!
  • Monroe on a Budget · 1 year ago
    We bought a newly built house. There were some things we left "builder quality" (such as closet doors) on the assumption we'd upgrade later; and other things that were projects for us to complete after-move in (such as cabinet hardware and painting the walls).
    I finally found a very nice ceramic pull / handle / switchplate collection that was perfect for the look we wanted in the house. Each piece ranged in price from $4 to $10 - which is relatively cheap as far as "doo-dads" go.
    Well, have you ever counted up every piece of hardware that is on your kitchen cabinetry? I have 22 pieces just on the drawers and handles! And then there were 9 switchplates - just in the kitchen!
  • jayowen · 1 year ago
    Don't forget the cost for a Home Inspection.