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  • SCG

Budgeting For Home Ownership

Updated: Apr 1, 2019

When you’re actively shopping for a new home, there are a few things to keep in mind when calculating your homeowner’s budget.

Monthly Expenses

Principal and interest payments on your mortgage

Real estate taxes

Heat: check owner's current bills

Electricity: check owner's current bills

Homeowner’s Insurance: ask insurance agent for an estimate

Additional costs: water, sewer, trash collection, homeowner’s association dues


Attend your home inspection appointment.  Make sure to ask questions and hold on to the report.  Although some repairs may be done by the seller, there are some things may be future concerns, like a water heater, roof, or furnace.  If you need to know when major components need replacing, an inspector can tell you.  A water heater can last, 10 to 12 years, a furnace, 12 to 15 years.

Make sure to address problems when they come up.  A loose bathroom tile may be fixed for a few dollars, but if you ignore it you may wind up rebuilding the whole wall.  Set aside $500 to $1,000 a year for these small repairs. 


Make an estimate as to when you'd like upgrades done.  Will you be able to live with those kitchen counter-tops for another year or another month?  When will you need new landscaping?  What about a new deck?  What about the addition you’ve been thinking about?  Decide what it is you want, get some rough estimates, and start putting money aside.

Most experts suggest that homeowners have 1% to 3% of the purchase price of their home saved for improvements and surprise expenses. 

Hopefully, you found this information useful.  Remember, you are always welcome (and encouraged) to contact us with questions anytime.

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