THE REAL COSTS OF HOME OWNERSHIP

When it comes to buying a home, we all know that the mortgage is what takes the majority of our paycheck: as we find ourselves broke and eating Ramen Noodles, we can't help but blame that 1500 dollar payment we have to make on the first of the month. While it may be the largest cost, the mortgage is far from the only cost of home ownership. There are all sorts of little things that add little costs, little costs that end up big.

Property Taxes: That's right, it's not just for Monopoly players anymore. Taxes often seem to be the American way and home ownership is included in this notion. In the simplest terms, property tax is imposed on property that is owned either on a group or individual basis. It is usually directly related to the price of the property (Baltic Avenue would have cheap property taxes, while the property tax on Boardwalk would be much more expensive). In most cases, property tax is paid by the home owner annually.

Property Insurance: We have health insurance, we have car insurance, and when we own a home, we have to have property insurance. Like the insurances for health and car, property insurance insures your home against catastrophic events caused by Mother Nature or those caused by bad human nature. Property insurance can come in a variety of forms that insure a variety of dangers. It can include fire insurance, flood insurance, earthquake insurance and hurricane insurance.

Home Association Fees: Welcome to the neighborhood, please get out your checkbook. Home Association Fees, for anyone who lives in planned communities or developments, are often a cost many home owners must pay. These HOA fees pay for neighborhood amenities, such as a swimming pool, playgrounds, watch programs and clubhouses, and are mandatory, even for those who don't engage in recreation.

Home Utilities: There is really no way to get around paying for utilities. Sure, you could do without gallons of water, without a lot of heat, without sparks of electricity, and without (gasp) cable, but you wouldn't live a very comfortable life. Utilities are simply part of home ownership. From paying to have the trash picked up to paying to have your lawn watered, the cost of utilities can add up, and add up fast. This is particularly true for people who define "comfortable living" as having high speed Internet and a television with at least 400 channels.

Home Maintenance: Everything in life needs maintenance, including your house. Even if you take the most pristine care of it - stopping just short of wiping it down with a cloth diaper each day - your house will eventually require some work. Weather, use, and age all take a toll. Ultimately, you will need to repaint the exterior, you will need to re-sod your lawn, you will need to install new windows, and you will need to get a new furnace. Nothing, not even your house, is immune to time.