Homeownership or buying a house is so much pride! You have always dreamt of it and now that you figure out that mortgage is turning much cheaper than rent, it quite makes sense to buy your dream house. You are simply in awe of the neighborhood, the school nearby and the location of the house at a ‘must-not-leave’ price!
“If mortgagee is much cheaper than rent, why everyone doesn’t buy a house rather than rent it?” asks PranavPuri, the topmost realtor in Greater Toronto Area (GTA). He simply highlights that this is because there are numerous hidden costs involved in buying a house which may not have been taken into account.
What are the Hidden Costs in Buying a House?
The experienced realtor of GTA says you must take into consideration the hidden or the disguised costs which only a genuine and experienced real estate agent can apprise you of. To make your real estate experience unique, simple and satisfactory, PranavPuri has curated a list of few hidden costs apart from the down payments, which must be taken into account while buying a new house or condo:
- Renovation Costs
Look at the condition of the house or the condo. Deeply inspect the roof and the condition of the walls. There may be added renovation charges unless you negotiate them to be a part of the home buying deal. Smaller changes that you may desire for your comfort are a part of the bigger expenses- getting cable-friendly sockets, changing the locks, getting new appliances, etc.
PranavPuri insists that these are the costs which only an experienced realtor can brief you about.
- Hire a Home Inspector Charges
You would need a home inspector to ensure that the house is in good moving condition and wouldn’t leak as the next downpour sets in. The ceiling, wooden panels, locks, wiring and the strength of the foundation can be assessed with an experienced realtor or a home inspector charges.
Did you take into account the fees of the home inspector or the realtor while calculating the costs of buying a home? Are these repair and maintenance charges covered by the home insurance? Are you ready to buy the house with the defaults and get them repaired as you move in?
These are a few questions which may boggle you down and only an experienced and reputable realtor can help and get you your money’s worth.
- Loan Origination Fees
The cost of loan origination fee is also too significant to be ignored. In case you opt for mortgage loans, the lender charges this fee to process the loan. It is a significant expense and only the best realtor of the area will help you consider this cost while assessing the total cost of owning a house.
Have you been ignoring yet another cost in buying a house? For buying a house or condo, several new insurance requirements have to be signed up. Title insurance, homeowners’ insurance and sometimes flood insurance, etc. are a few to name.
The best realtor in GTA, Pranav, says these aren’t really too much of an expense. However they may add up to be a substantial amount as the years pass. Factors like your location and insurance provider may cause a differing impact on the insurance amount.
- Buying a Home vs. a Condo
If your family size or choice for a bigger house makes you look for a condo, take into consideration additional fees. Larger renovations may amount to large assessment and larger renovation expenses.
Pranav, however, being an experienced real estate agent, suggests that in some cases buying a condo may be financially less stressful as after paying an annual charge to the association of the locality, your repair and maintenance costs will be taken care of.
- Closing Costs
Appraisal costs, moving costs, buying new lawn and garden maintenance equipment, replacing obsolete appliances and cost of starting a new house are some closing costs which you may ignore while buying a new house. Before buying or selling a house or apartment, you must sit and plan these hidden expenses which may hurt the pocket eventually.
Buying a house can be tedious and you may be overwhelmed if there is no genuine help. Homelife is the most reliable company to assist you in making wise decisions that make your real estate experience worth each penny. Seek help before the unaccounted and hidden expenses threaten your wallet and make the whole experience of buying your house a haunting event.
Are you ready?
Plan in a way that you are not caught unaware.