9 Costly ‘Extras’ to
prepare for as Homeowners
Buying a home is
very exciting time. There is so much to
think about with the buying process that people often overlook some of the
extra costs that will pounce on you as a new homeowner. I found this article on an amazing website
called www.wisebread.com but have
edited it to fit our Real Estate market in The Bahamas.
When people have a
budget in mind for their house they typically factor in the cost of the home, the
taxes and fees required for the transaction and then focus on the monthly
mortgage payment amount.
As a potential new
homeowner, it is important to factor in the following extra costs so the
excitement and joy of becoming a homeowner and fulfilling a dream does not
quickly fade and become a nightmare! So, if you’re planning to buy a new home,
have just signed the paperwork, or are moving in next week, this list is for
you. And if you know someone who's moving in, share this with them.
1. Window Coverings, Treatments, Hurricane
Shutters & Security Screens
“Oh, look at all the
windows! It’s so bright, so spacious, the views are lovely!” Well, yes they
are. But you don’t want people viewing you at night, or looking in whenever
they want, so all those windows need coverings. If it’s a new home, you’re
going to be spending hundreds (and probably thousands) of dollars on blinds,
curtains, curtain rods, tie backs, valances, and shades (even more if you're
not too handy and have to have someone come and fit them for you). If it’s an
old home, you may be fine for a year or two with what is there, but you’ll need
to decide if you want to live with the old owner’s treatments or have your
own. You also need to factor in
hurricane shutters and in some locations security screens for added protection
if the home you are buying is not already equipped.
2. Landscaping and Grounds keeping
Walking around new
neighborhoods, you see all sorts of beautiful landscapes. And there, almost
always, you’re on your own. Depending on the size of the yard and the HOA rules
and restrictions, you could be looking at $10,000 - $30,000 worth of
landscaping materials and labor. Want a deck or a patio? That’s even more
money. And then you may need sprinklers, irrigation, and other services. If you
move into an old home, that’s no guarantee of a great yard. So, do your homework. See if you can hustle
the homebuilder for a finished back yard too, or ask the seller to drop the
price to cover landscaping. Or be
prepared to live with it as is until the additional funds come along.
3. Major Appliances
New home builds will
sometimes include utilities, but not always. If you buy an existing home, you
may not have any appliances included, or they may be old. So figure on spending a nice chunk of change
when the time comes to move in or upgrade.
4. HOA Fees
In Nassau
5. Furniture
Of course tastes can
range from Ikea to custom-built furniture, but what you need to know is that
most homeowners completely underestimate the amount of furniture they’ll need.
This is especially true when upgrading from your starter home into a bigger
home. You may now have two areas for relaxing, a living room and family room.
You could also have a den, a library, a nook or study, extra bedrooms, guest
rooms, outdoor dining/living areas or even a game room. Depending on what
you’re moving into, you could have a very empty-looking house that needs to be
filled. Get ready to go shopping. Or get
creative, talk to people who are updating their house, try consignment shops
and garage sales.
6. Insurance
There are a few
different types of insurance you need to have when buying a home. First, you
must have homeowners insurance. If you have a mortgage in The Bahamas you are
required to have catastrophe which covers hurricanes. If you live in a duplex
or other type of connected building, the insurance may be covered in your HOA
dues, but you should also have contents insurance, based on the value of your
possessions. Banks also require life insurance policies, which is not
substantial but still an extra monthly expense.
7. Property Tax
Property Taxes in Nassau
8. Utilities
This can be quite a
shock, especially the electricity bills in Nassau
9. Repairs and Maintenance – Who Knows!
One of the biggest
unknown expenses of owning a home is the repairs and maintenance costs that can
hit you out of nowhere. If you were formerly renting, that was all taken care
of. Now it’s all on you. If the water heater breaks, you pay. If the roof
leaks, you pay. If you need a new well, you pay. If there are plumbing issues,
you pay. And these bills can be steep. You’ll soon find out that hourly labor
costs for plumbers, electricians, and builders are usually a lot more than the
hourly wage you get paid. It is
important to have a reserve fund for emergency household expenses, and factor
that in as a monthly ‘expense’ to put away money into a household repairs fund
so when the fridge breaks you have the money to repair/replace it.
As a licensed sales
agent and appraisal associate, I would be more than happy to help you through
your home purchasing experience and aim to make it as smooth as possible! laura@grahamrealestate.com
