A question by Brian D: We’re buying a house, and we’re trying to figure out exactly what new bills we need to factor in.
We already pay:
- -Rent (=mortgage)
- -Electricity
- -Water
And we know we’ll have to add:
- -House Insurance
- -Gas
- -Trash
But what else are we missing? Just a general list of bills, not pricing or anything. Thanks!
Answers
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“property tax, depending on your loan private mortgage insurance, possibly HOA dues, and then just general maintenance. heat, Sewer? or septic tank maintenance, cable, internet, phone, lawn maintenance. And an emergency account to pay for repairs such as leaky faucets, broken windows, new appliances. Remember there is no landlord to call at 2 am you are it. Mortgage insurance (if not included in the above), possible HOA fees (homeowner association), money for repairs that a renter usually does not pay for – plumbing, heating, AC, etc”
Anonymous
“It is not surprising. It is a myth that buying is always better. Buy vs. Rent. As housing market slump, it is easier to calculate “Rent vs. Buy” scenario. Because “appreciation” is no longer a factor. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn’t add to the equity to your house. It simply disappear as your pay it. If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy. For example, let’s buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month. Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through. And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay.”
Anonymous
“Mortgage insurance (if not included in the above), possible HOA fees (homeowner association), money for repairs that a renter usually does not pay for – plumbing, heating, AC, etc.You have to add to that your cables, which you usually get with your rental, you have to add the property taxes, and also factor in the repairs. When renting, you do not pay for any repairs, like A/C, plumbing, appliances, roof, etc… And, every so long, you have to change or make major”
Kamal